SBA Relief Still Available to Tennessee Businesses, Private Nonprofits, and Residents Affected by the Severe Winter Storm

WASHINGTON -The U.S. Small Business Administration (SBA) is reminding eligible businesses, private nonprofit (PNP) organizations, homeowners, and renters in Tennessee of the June 10 deadline to apply for low-interest federal disasters to offset losses from physical damage caused by a severe winter storm occurring Jan. 22 - 27.

The declaration covers Tennessee primary counties of Benton, Carroll, Cheatham, Chester, Clay, Davidson, Decatur, Dickson, Dyer, Fayette, Hardeman, Hardin, Henderson, Hickman, Lewis, Macon, Madison, Maury, McNairy, Montgomery, Perry, Robertson, Rutherford, Shelby, Sumner, Trousdale, Wayne, Williamson, and Wilson, which are eligible for both Physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Small businesses and most private nonprofit (PNP) organizations in the following adjacent counties are eligible to apply only for SBA EIDLs: Tennessee counties of Bedford, Cannon, Coffee, Crockett, DeKalb, Gibson, Giles, Haywood, Henry, Houston, Humphreys, Jackson, Lake, Lauderdale, Lawrence, Marshall, Obion, Overton, Pickett, Smith, Stewart, Tipton, and Weakley, and the Alabama county of Lauderdale, and the Arkansas counties of Crittenden and Mississippi, and the Kentucky counties of Allen, Christian, Clinton, Cumberland, Logan, Monroe, Simpson, and Todd, and the Missouri county of Pemiscot, as well as the Mississippi counties of Alcorn, Benton, DeSoto, Marshall, Tippah, and Tishomingo.

Businesses and nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.

Applicants may also be eligible for a loan increase of up to 20% of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.

Interest rates are as low as 4% for small businesses, 3.625% for PNPs, and 2.875% for homeowners and renters, with terms of up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant's financial condition.

"One distinct advantage of SBA's disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA's mitigation loans."

With the changes to FEMA's Sequence of Delivery, survivors are now encouraged to simultaneously apply for FEMA grants and the SBA low-interest disaster loan assistance to fully recover.  FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for your long-term recovery, to make you whole and get you back to your pre-disaster condition.

To apply online, visit sba.gov/disaster. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The filing deadline to return applications for physical property damage is June 10. However, after the deadline has passed, there is a 60-day grace period in which SBA will accept applications. The deadline to return economic injury applications is Jan. 11, 2027.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit https://www.sba.gov.