Three Roots Capital (3Roots) is an innovative finance company providing loans and equity investments to small businesses and real estate projects throughout Tennessee and Appalachia. Founded to address the chronic shortage of investment capital in central and southern Appalachia, 3Roots is dedicated to supporting entrepreneurs, small businesses, real estate development, and communities in economically challenged areas across the region. As a certified Community Development Financial Institution (CDFI) and Community Development Entity (CDE) recognized by the U.S. Department of the Treasury, Three Roots Capital leverages flexible capital and impact-driven strategies to unlock economic opportunity and foster sustainable growth. Our approach combines targeted financing with business coaching and deep community engagement, enabling meaningful investment in projects that create jobs, strengthen neighborhoods, and promote regional prosperity.

Why Tennessee?

Tennessee’s vibrant entrepreneurial spirit, skilled workforce, and strategic location in the Appalachian region make it the ideal place for Three Roots Capital to operate. The state’s commitment to economic development aligns closely with our mission to close capital gaps in underserved communities. Tennessee’s growing innovation ecosystem, particularly in cities like Knoxville, provides access to talented leaders and partners who share our vision for sustainable, inclusive growth. Additionally, the state’s strong network of public-private collaborations creates a fertile environment for deploying impact investments and supporting small businesses that drive real community change.

What local resources and partnerships has Three Roots Capital leveraged to support growth and innovation?

Three Roots Capital leverages a broad network of local partnerships to drive our growth and innovation. Collaborations with key organizations such as the University of Tennessee Research Park, Knoxville Area Urban League, Knoxville Chamber of Commerce, Knoxville Entrepreneur Center, Innov865 Alliance, and regional governments expand our reach and deepen our impact. We work closely with local banks, including SouthEast Bank and CBBC Bank, to co-invest in transformative projects revitalizing neighborhoods and supporting entrepreneurs. A recent example is our partnership with SouthEast Bank to finance the historic Sanitary Laundry building renovation in North Knoxville. Led by The Christman Company and designed by McCarty Holsaple McCarty Architects, this project will convert the site into a modern, multi-purpose facility featuring new commercial space and serving as headquarters for MHM Architects.

Our active participation in regional roundtables and community initiatives, such as those addressing affordable childcare and workforce development, enables us to align capital strategically with urgent community needs. As a certified Community Development Financial Institution and Community Development Entity, we have access to federal programs like New Markets Tax Credits, which we deploy thoughtfully to catalyze economic growth throughout Tennessee and Appalachia.

Additionally, we partner with regional universities, incubators, and organizations like the Knoxville Entrepreneur Center and Innov865 Alliance to expand access to capital in the areas in which we operate. Our ability to successfully support these organizations directly results from the strength and depth of the local network we have cultivated across Tennessee.

How do you see TEAM TN helping Tennessee grow its leadership in the advanced mobility sector?

TEAM TN is an excellent example of what can happen when collaboration is intentional. Its focus on AI-enabled innovation, electrification, automation, and cybersecurity resonates with the projects we support at Three Roots Capital. We are particularly encouraged by the coalition’s emphasis on building connections between research institutions, private industry, and economic development groups. This type of ecosystem thinking is precisely what drives sustainable, long-term progress.

Three Roots Capital sees a meaningful role in helping capitalize and scale the innovations that emerge from TEAM TN’s network. As companies in this space begin to grow, they will need access to flexible capital, technical support, and strategic partnerships. TEAM TN’s comprehensive approach positions Tennessee to compete and lead in this evolving sector. We look forward to contributing where our tools and perspective can accelerate impact.

What does the future hold for Three Roots Capital in terms of growth, innovation or community involvement?

3Roots is actively expanding its impact across Tennessee and central Appalachia. We recently invested in Blank Beauty, a beauty-tech company combining software, robotics, and chemistry to deliver precision-matched cosmetic products. The company selected Knoxville for its headquarters and production facility, citing access to talent, the strength of the local innovation ecosystem, and investor support. Its new location in a federally designated low-income census tract will allow it to generate economic impact and job creation as it scales.

This investment builds on the momentum of our recent efforts to accelerate growth in underserved areas. In the past 18 months alone, 3Roots has committed $95 million of New Markets Tax Credits to support the expansion of three manufacturing businesses in Tennessee and one in southwest Virginia. These projects are unlocking new opportunities in communities that have historically been overlooked and underinvested in.

We are continuing to support initiatives that address systemic barriers to opportunity, including childcare access, and workforce development. These efforts are supported by our expanding network of community and institutional partners. As we look to the future, we are focused on deploying capital that responds to the evolving needs of our region and investing in projects and businesses that drive inclusive economic growth.