Low-Interest Disaster Loans for Tennessee Businesses

News Summary

Tennessee small businesses and nonprofits can now apply for low-interest federal disaster loans due to economic strains from the recent drought. The U.S. Small Business Administration (SBA) has introduced Economic Injury Disaster Loans (EIDL) aimed at assisting those in Cheatham, Davidson, Dickson, and nearby counties affected by financial losses. Eligible entities can borrow up to $2 million at competitive interest rates and flexible terms, making recovery from the drought more manageable. Applications are being accepted online until November 28, 2025.

Low-Interest Disaster Loans Available for Tennessee Businesses and Nonprofits!

Attention Tennessee small business owners and nonprofit organizations! Good news is rolling in as the U.S. Small Business Administration (SBA) has just released information about low-interest federal disaster loans designed especially for you. If your business or nonprofit has felt the economic strain of the drought that plagued our state from August 1 to December 1, 2024, you might qualify for some much-needed financial support.

What’s The Scoop?

These Economic Injury Disaster Loans (EIDL) are specifically crafted to assist entities that experienced financial losses due to the drought. The counties that will benefit include Cheatham, Davidson, Dickson, Hickman, Marshall, Maury, Rutherford, and Williamson. So, if you’re situated in any of these areas and your organization is facing tough times due to the dry spell, it’s time to pay attention!

Who Can Apply?

Eligibility is pretty straightforward. The loans are open to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that have experienced financial challenges related to the drought. However, it’s important to note that typical agricultural producers, farmers, or ranchers usually can’t apply unless they are involved in aquaculture.

What Can You Use The Loans For?

One fantastic aspect of these loans is that you can still receive assistance even if your business didn’t incur any physical damage during the drought. The funds can be used for a variety of important expenditures, including fixed debts, payroll, accounts payable, and other necessary payments that are now difficult to cover due to the natural disaster.

Loan Amounts and Terms

If you’re wondering about the finances, here’s what you need to know: loan amounts can reach up to $2 million. Small businesses are looking at interest rates as low as 4%, while nonprofit organizations can enjoy even lower rates at 3.25%. Additionally, loan terms can stretch up to 30 years, with initial payments deferred for the first 12 months. The exact amount and terms of the loans will be determined based on your individual financial situation, making it a fair approach to help you get back on your feet.

How to Apply

Ready to get started? Applications can be submitted conveniently online at sba.gov/disaster. For those who prefer a more personal touch, you can also reach out to the SBA Customer Service Center at 800-659-2955. But remember, time is of the essence! The deadline for submitting economic injury applications is November 28, 2025.

Hurricane Helene Aid

But that’s not all! If you were affected by Hurricane Helene, you can also swing by for assistance. Homeowners in the affected counties—such as Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi, and Washington—can receive up to $500,000 to repair or replace properties damaged in the disaster. Plus, up to $100,000 is available for personal property recovery.

Additional Opportunities for Nonprofits

Nonprofit organizations located in Grainger, Hancock, Jefferson, Sevier, and Sullivan counties can likewise apply for EIDL if they’ve faced economic injuries.

A Heads Up on Application Changes

While it’s great to have these options available, it’s essential to keep in mind that while applications are currently being accepted, new loans cannot be issued until Congress approves additional funding. For those looking to apply for physical disaster loans, the deadline is December 2, 2025, and for economic injury loans, the deadline is July 2, 2025.

Need Extra Help?

If you’re feeling overwhelmed by the application process, remember that loan customers might find useful support in navigating their insurance claims, all while managing their disaster recovery plans.

So if you’re one of the many businesses or nonprofits in Tennessee feeling the pinch from the drought or Hurricane Helene, don’t hesitate to seek help. You are not alone, and there are resources available to support you through these challenging times!