Tennessee Gov. Bill Lee Wednesday asked the U.S. Small Business Administration for Economic Injury Disaster Loan assistance to provide up to $2 million per applicant of government-backed loans for small businesses and nonprofit organizations hurt as a result of COVID-19.
"For most of my life, I've been a small business owner and understand the unique challenges each of you face," Lee said.
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. Interest rates for the loans are 3.75% for small businesses and 2.75% for nonprofit organizations.
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 1 million Tennesseans.
Additional information about Economic Injury Disaster Loan assistance, along with instructions on where to apply, will be announced once the declaration has been received.