The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Tennessee of the approaching July 2 deadline to apply for federal disaster loans. These loans are intended to offset economic losses due to Tropical Storm Helene, which occurred from September 26-30, 2024.
The disaster declaration encompasses multiple counties across Tennessee, North Carolina, and Virginia. Specifically, it includes Carter, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington in Tennessee; Ashe, Avery, Haywood, Madison, Mitchell, Watauga and Yancey in North Carolina; as well as Grayson Scott and Washington in Virginia.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses and private nonprofits that have suffered financial losses directly related to the storm. However, agricultural producers such as farmers or ranchers are not eligible unless they are involved in small aquaculture enterprises.
EIDLs can be used for working capital needs caused by the disaster. This applies even if the business or nonprofit did not suffer physical damage. The loans can cover expenses such as fixed debts and payroll.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," said Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
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. No interest accrues nor payments are due until one year after the first loan disbursement. The SBA determines loan amounts based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster. For more information on SBA disaster assistance or help with applications, individuals may contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is July 2, 2025.