The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofits in Tennessee. This financial assistance aims to support those who have suffered economic losses due to the drought occurring from August 1 to December 1, 2024.
The disaster declaration is applicable to businesses and organizations located in Cheatham, Davidson, Dickson, Hickman, Marshall, Maury, Rutherford, and Williamson counties. Eligible entities under this declaration include small businesses, small agricultural cooperatives, aquaculture enterprises, nurseries, and private nonprofit organizations (PNPs). However, the SBA does not extend disaster loans to agricultural producers, farmers, or ranchers.
The Economic Injury Disaster Loan (EIDL) program supports the working capital needs stemming from the disaster. This support remains available even if the entity did not suffer physical damage. Funds from these loans can be used to cover fixed debts, payroll, accounts payable, and other unsettled bills due to the economic impact of the drought.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts can reach up to $2 million, with interest rates starting at 4% for small businesses and 3.250% for PNPs. The terms extend up to 30 years with the first payment due 12 months after the initial loan disbursement. The amount and terms of the loans are determined by each applicant's financial condition.
Applications for this disaster assistance can be submitted online at sba.gov/disaster. SBA’s Customer Service Center is available for inquiries at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf, hard of hearing, or have speech disabilities.
The deadline to return economic injury applications is November 28, 2025.