In light of an amended Presidential disaster declaration, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for private nonprofit organizations in three additional Tennessee counties. These counties, Carroll, Houston, and Wayne, were affected by severe storms, straight-line winds, tornadoes, and flooding from April 2 to April 24, 2025.
The declaration allows PNPs that provide non-critical services of a governmental nature to apply for business physical disaster loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
PNPs can borrow up to $2 million to repair or replace disaster-damaged or destroyed assets such as real estate and equipment. There is also a possibility for loan increases up to 20% of physical damages verified by the SBA for mitigation purposes.
EIDLs are available for working capital needs caused by the disaster even if there was no physical damage. The loans can be used for fixed debts, payrolls, accounts payable, and other bills not 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 from 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 start at 3.625%, with terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement. Loan amounts and terms are 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 are available by dialing 7-1-1.
The deadline for applications concerning physical property damage is August 19, 2025. For economic injury applications, the deadline is March 19, 2026.