SBA offers disaster relief to Tennessee Small Businesses and private nonprofits affected by drought

MGN

The U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Tennessee who sustained economic losses caused by drought beginning on Dec. 30, 2025.

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs — including faith-based organizations.

The disaster declaration covers the Tennessee counties of Anderson, Bledsoe, Blount, Bradley, Carter, Cocke, Crockett, Cumberland, Dyer, Fentress, Gibson, Greene, Hamblen,  Hamilton, Hawkins, Jefferson, Johnson, Knox, Lake, Lauderdale, Loudon, Marion, McMinn, Meigs, Monroe, Morgan, Obion, Polk, Putman, Rhea, Roane, Scott, Sequatchie, Sevier, Sullivan, Unicoi, Van Buren, Washington, and White and the Arkansas county of Mississippi, Georgia counties of Catoosa, Dade, Fannin, Murray, Walker, and Whitfield and the Kentucky county of Fulton and the Missouri counties of New Madrid and Pemiscot and the North Carolina counties of Ashe, Avery, Cherokee, Graham, Haywood, Madison, Mitchell, Swain, Watauga, and Yancey, as well as the Virginia counties of Grayson and Washington.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

–  Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA said.

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms of up to 30 years.

They say interest does not 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.

To apply online visit sba.gov/disaster