In response to an amended Presidential disaster declaration, the U.S. Small Business Administration (SBA) has made low-interest federal disaster loans available to private nonprofit organizations in six additional Tennessee counties affected by severe storms, straight line winds, tornadoes, and flooding from April 2–24, 2025.
The newly designated primary counties are Crockett, Henderson, Humphreys, Lewis, Montgomery, and Shelby. Private nonprofits providing non-critical services of a governmental nature in these areas can apply for both business physical disaster loans and Economic Injury Disaster Loans (EIDLs). Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
Private nonprofits may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may also qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. EIDLs are intended for working capital needs caused by the disaster and are available even if there was no physical damage. The funds can be used to pay fixed debts, payroll costs, 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 for these loans are as low as 3.625%, with repayment terms up to 30 years. Interest does not accrue and payments are not required until 12 months after the first loan disbursement. Loan amounts and terms are set based on each applicant’s financial situation.
Applicants can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for more information. Telecommunications relay services are available by dialing 7-1-1.
The deadline for submitting applications for physical property damage is August 19, 2025. Applications for economic injury must be submitted by March 19, 2026.
The SBA provides resources and support through its network of field offices and partnerships with public and private organizations across the country.