Amends TCA Title 4, Chapter 3, Part 7 and Title 67, Chapter 4.

Tennessee SB1185 enacts the "Small Business Growth and Empowerment Act," establishing a fund to support economic development activities for minority-owned and women-owned businesses in underserved areas, and introduces a business tax credit for qualifying small businesses. The bill affects small businesses that meet specific criteria related to local hiring or workforce training, and it outlines the fund's composition, reporting requirements, grant distribution, and permissible uses of grant funds. Key provisions include the fund's management, grant eligibility for local governments and nonprofits, and a tax credit equal to 50% of business tax liability for certified small businesses starting January 1, 2026.