Small Business Loans

March 20, 2020 - TN Department of Economic & Community Development

Loans now available to Tennessee small businesses that have suffered economic injury as a result of COVID-19

NASHVILLE, Tenn. – Today, Gov. Bill Lee announced that Tennessee has received a declaration for Economic Injury Disaster Loan assistance from the U.S. Small Business Administration in response to a request submitted on Wednesday, March 18.

“I applaud the efforts of the SBA in swiftly processing and approving Tennessee’s request for Economic Injury Disaster Loan assistance,” Lee said. “Small businesses and nonprofits across the state are suffering greatly in the wake of this pandemic, and these loans will help overcome the temporary loss of revenue companies are experiencing during this difficult time.”

Small businesses and nonprofit organizations that have suffered economic injury as a result of COVID-19 can apply for Economic Injury Disaster Loans of up to $2 million per applicant to help meet financial obligations and operating expenses which could have otherwise been met.

The Economic Injury Disaster Loans are administered and processed through the SBA. Applicants may apply online, receive additional disaster assistance information and download applications at 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.

Interest rates for the loans are 3.75% for small businesses and 2.75% for nonprofit organizations. The loans can be used to pay fixed debts, payroll, accounts payable or other bills that can’t be paid due to the disaster’s impact.

“We have been in contact with business and community leaders across the state who are concerned about the toll COVID-19 is placing on their businesses and workforce,” TNECD Commissioner Bob Rolfe said. “We are pleased to see that these loans will act as a source of relief for so many of Tennessee’s small businesses in the months ahead.”

The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

More than 94 percent of Tennessee’s private sector business establishments have fewer than 50 employees. This represents 151,500 businesses that employ over one million Tennesseans.

Employment has increased 13.6 percent at these establishments over the last five years, placing Tennessee in the nation’s top 10 states for small business growth.

Small businesses are encouraged to learn more about resources offered by the U.S. Small Business Administration at https://www.sba.gov/.

Information about the SBA’s District Office in Tennessee can be found here.

Up-to-date information on COVID-19 in Tennessee can be found here.

TNECD Media Contact

Jennifer McEachern, Communications Director
(615) 336-2689
[email protected]

About the Tennessee Department of Economic and Community Development

The Tennessee Department of Economic and Community Development’s mission is to develop strategies that help make Tennessee the No. 1 location in the Southeast for high quality jobs. To grow and strengthen Tennessee, the department seeks to attract new corporate investment to the state and works with Tennessee companies to facilitate expansion and economic growth. Find us on the web: tnecd.com. Follow us on Twitter and Instagram: @tnecd. Like us on Facebook: facebook.com/tnecd.

U.S. Senator Marsha Blackburn

Congressional Response to the Coronavirus

Unemployment Insurance

Summary: On March 25, 2020, the Senate passed H.R.748 by a vote of 96-0, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which contains nearly $340 billion in emergency funding. The House concurred with the Senate and passed the measure by voice vote on March 27, 2020.

CARES Act, Division A, Title II: Assistance for American Workers, Families, and Businesses:

Allows states to temporarily increase unemployment benefits and receive federal reimbursement, and allows participation by self-employed and independent contractors. Specifically:

Creates a temporary Pandemic Unemployment Assistance program through 12/31/20 to provide payment to those unable to work as a direct result of the coronavirus public health emergency.

• Provides an additional $600 per week to unemployment recipients for up to four months.
• Provides an additional 13 weeks of unemployment benefits through 12/31/20 to help those who remain unemployed after weeks of state unemployment benefits no longer available.

Provides payment to states to reimburse nonprofits, government agencies, and Indian tribes for half the costs they incur through 12/31/20 to pay unemployment benefits.

Provides funding to pay the cost of the first week of unemployment benefits through 12/31/20.

Provides states with temporary flexibility to hire staff, rehire former staff, or take other steps to quickly process unemployment claims.

Provides funding to support “short-time compensation” where employers reduce hours instead of laying off workers by paying 100 percent of the costs they incur doing so through 12/31/20.

• Provides funding to states which begin “short-time compensation” programs

For additional information:
https://www.finance.senate.gov/imo/media/doc/CARES%20Act%20Section-by-Section%20(Tax,%20Unemployment%20Insurance).pdf
https://www.dol.gov/coronavirus