The US. Small Business Administration (SBA) has offered disaster relief to Tennessee small businesses and private non-profit organizations. The relief comes in the form of low interest federal disaster loans. Loans and will be available to cover economic losses caused by the drought that started on 16 Sep 2025.
The disaster declaration covers the counties of Chester, Decatur, Hardin, Henderson, McNairy and Wayne in Tennessee. Lauderdale County in Alabama as well as Alcorn and Tishomingo counties in Mississippi also received relief under the declaration.
About the Economic Injury Disaster Loan (EIDL)
The SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and non-profits with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He also said, ““We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The SBA sets loan amounts and terms based on each applicant’s financial situation. The maximum loan amount is $2 million with interest rates as low as 4% for small businesses and 3.625% for non-profits. Recipients have up to 30 years to repay, interest does not accrue and payments are not due until 12 months from the first disbursement.
To apply, visit the SBA’s disaster assistance page.
You may also contact the SBA via phone (800) 659-2955 or email disastercustomerservice@sba.gov. Differently abled applicants can dial 7-1-1 to access telecommunications relay services.
The deadline for applications is 31 Aug 2026.
