After the Storms - SBA Lending Increases in TN Disaster Counties

Tennessee businesses have received significant financial support from the SBA and FEMA since the record floods that hit Tennessee on May 1, 2010:

More than $100 million in U.S. Small Business Administration Disaster Assistance Loans have been approved for disaster survivors in Tennessee. “Currently, 2,136 disaster loans have been approved in the amount of $101,987,800,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta. “We hope the extension of the deadline will encourage more Tennesseans to apply for assistance before August 5.”

Businesses and private non-profit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.

For small businesses, and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available if the business suffered no physical property damage.

Interest rates are as low as 2.750 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Contact the SBA’s Customer Service Center at 800-659-2955 (or 800-877-8339 for people with speech or hearing disabilities) Monday through Friday from 8 a.m. to 6 p.m. EDT (Closed Monday, July 5 in recognition of Independence Day) or by sending an e-mail to disastercustomerservice@sba.gov. Business loan applications may be downloaded from www.sba.gov. Applications may be returned to one of the Centers located throughout the disaster area or mailed to: U. S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.

Your business may qualify if it's located in one of the following FEMA designated disaster counties.


As always, if your business has other financing needs, please contact us at 1-888-533-PATH(7284) or visit us online at www.pathwaylending.org.