The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Tennessee regarding the upcoming deadline of February 28 for applying for federal disaster loans. These low-interest loans aim to offset economic losses caused by severe weather conditions, including excessive rain, hail, high winds, and lightning on May 8-9, 2024.
The disaster declaration includes the counties of Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Knox, and Union. The SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, and private nonprofits that experienced financial losses due to the disaster. However, agricultural producers such as farmers or ranchers are not eligible unless they are small aquaculture enterprises.
These EIDLs provide working capital needs caused by the disaster even if no physical damage occurred. They can be used for paying fixed debts, payrolls, accounts payable, and other expenses that would have been covered had the disaster not taken place.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years. Notably, interest does not accrue nor are payments required until 12 months after the first loan disbursement. The SBA determines loan terms based on each applicant’s financial condition.
For more information or to apply online visit sba.gov/disaster. Assistance is also available through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1 for those who are deaf or hard of hearing.
The final date for submitting economic injury applications is February 28, 2025.
The U.S. Small Business Administration supports American business ownership by providing resources necessary for entrepreneurs to start or recover from declared disasters through its extensive network of field offices and partnerships with public and private organizations.