The U.S. Small Business Administration (SBA) has announced an extension for the deadline to apply for physical damage loans in areas affected by the 2024 federal funding lapse. The new deadline is set for April 27, 2025.
This disaster declaration affects Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi, and Washington counties. These regions are eligible for both Physical and Economic Injury Disaster Loans (EIDLs). Adjacent counties such as Grainger, Hancock, Jefferson, Sevier, and Sullivan in Tennessee; Ashe, Avery, Haywood, Madison, Mitchell, Watauga and Yancey in North Carolina; Grayson, Scott and Washington in Virginia can apply only for SBA EIDLs.
Businesses and nonprofits can apply for business physical disaster loans with borrowing limits up to $2 million to cover damages to real estate and other assets. Homeowners and renters may borrow up to $100,000 for personal property repairs or replacements. Additionally, homeowners have the option to apply for up to $500,000 for primary residence repairs.
There is also an opportunity for applicants to increase their loan by up to 20% of their verified physical damages for mitigation purposes. Eligible improvements include structural upgrades against high winds and installing storm shelters.
"One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA. He encouraged taking advantage of these mitigation loans.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 2.813% for homeowners. Payments are deferred until 12 months after the first disbursement.
Applications can be submitted online at SBA.gov/disaster or through SBA's Customer Service Center at (800) 659-2955. Assistance is available via telecommunications relay services by dialing 7-1-1.
The deadline for submitting applications related to physical property damage remains April 27, 2025.