Tennessee has submitted a request for Economic Injury Disaster Loan assistance to the U.S. Small Business Administration, Gov. Bill Lee announced Wednesday.
The assistance allows small businesses and nonprofit organizations negatively impacted by the coronavirus to apply for loans of up to $2 million.
“For most of my life, I’ve been a small business owner and understand the unique challenges each of you face,” Lee said in a statement. “While I am pleased with our progress on targeted relief for small businesses, we know this is just a first step from our federal partners to provide liquidity to our businesses. We are in constant dialogue with our delegation members to ensure that federal aid is responsive to our concerns and needs.”
More than 94 percent of Tennessee’s private sectors are businesses with fewer than 50 employees, representing 151,500 businesses employing more than one million residents of Tennessee.
The money from the loans can be used to pay debts, payroll, accounts payable or other bills organizations are struggling to pay because of the pandemic’s impact.
Interest rates for the loans will be 3.75 percent for small businesses and 2.75 percent for nonprofit organizations. The loans are offered with long-term repayment plans for up to 30 years, determined on a case-by-case basis.
“Small business is the backbone of Tennessee’s economy, and right now they have been faced with unprecedented challenges,” TNECD Commissioner Bob Rolfe said in a statement. “We will continue to provide the necessary resources, information and support to help our small businesses overcome these obstacles as quickly as possible.”
There are currently 154 confirmed cases in Tennessee as of Thursday evening, according to the Tennessee Department of Health. There are also more than 10,000 confirmed cases of the coronavirus in the United States, as well as 150 deaths, according to the Centers for Disease Control and Prevention.
Information about the Small Business Administration’s District Office in Tennessee can be found at https://www.sba.gov/offices/district/tn/nashville.
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Jordyn Pair is a reporter with Battleground State News and The Michigan Star. Follow her on Twitter at @JordynPair. Email her at [email protected].
