SBA offers aid to Tennessee nonprofits hit by April storms

SBA offers aid to Tennessee nonprofits hit by April storms

Economics
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John Miller Deputy Associate Administrator for the Office of Capital Access (OCA) | www.sba.gov

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In response to a Presidential disaster declaration issued on June 19, 2025, the U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are available for certain private nonprofit organizations in Tennessee. These organizations were affected by severe storms, straight-line winds, tornadoes, and flooding that occurred from April 2 to April 24, 2025.

The counties covered under this disaster declaration include Cheatham, Davidson, Decatur, Dyer, Fayette, Gibson, Grundy, Hardeman, Hardin, Haywood, Henry, Hickman, Lauderdale, Madison, McNairy, Obion, Perry, Stewart and Tipton.

Eligible private nonprofits providing non-critical services of a governmental nature can apply for both business physical disaster loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Examples of such organizations include food kitchens, homeless shelters, museums, libraries community centers schools and colleges.

These nonprofits may borrow up to $2 million to repair or replace real estate machinery equipment inventory and other business assets damaged or destroyed by the disaster. Additionally applicants may qualify for a loan increase of up to 20% of their physical damages as verified by the SBA for mitigation purposes.

EIDLs are intended for working capital needs caused by the disaster even if no physical damage was sustained. These loans can be used to cover fixed debts payroll accounts payable and other bills that could not be paid due to the disaster.

"SBA loans help eligible PNPs cover operating expenses after a disaster which is crucial for their recovery," said Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help PNPs get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."

Interest rates are as low as 3.625% with terms extending up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial condition.

Applications can be submitted online at sba.gov/disaster or 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 hard of hearing or have speech disabilities.

The deadline for returning applications related to physical property damage is August 19 2025 while economic injury applications must be submitted by March 19 2026.

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