Small Business Administration Loans for Businesses

After a federally declared disaster, the U.S. Small Business Administration (SBA) offers low-interest Disaster Loans to help businesses and private nonprofit organizations repair or replace damaged property and recover from economic losses. Even though these loans come from the “Small Business Administration,” they are available to businesses of all sizes, not just small businesses. SBA Disaster Loans feature low, fixed interest rates and repayment terms of up to 30 years, helping to reduce financial strain and support long-term recovery. These loans can help bridge the gap between insurance coverage and the true cost of rebuilding, allowing Tennessee businesses to stabilize operations and move forward after a disaster.

What Are SBA Disaster Loans for Businesses?

SBA Disaster Loans provide financial assistance to eligible businesses and nonprofits for both physical damage and economic injury caused by a federally declared disaster. These loans are designed to help restore commercial facilities, equipment, and working capital so organizations can return to normal operations as quickly as possible.SBA offers two primary types of loans for businesses:

  • Business Physical Disaster Loans: For physical property damage
  • Economic Injury Disaster Loans (EIDL): For financial hardship caused by disaster-related loss of revenue

What Can the Loans Be Used For?

SBA Disaster Loans for businesses may cover:

  • Repair or replacement of damaged real estate
  • Repair or replacement of machinery, equipment, and vehicles
  • Replacement of inventory or other business assets
  • Working capital needs to help cover ordinary expenses during recovery (EIDL)
  • Mitigation improvements, such as upgrades that reduce future disaster lossesUninsured or underinsured costs

Businesses do not need to wait for an insurance settlement before applying.

Why Businesses Should Apply

Even if a business is unsure whether it wants or needs a loan, it should still complete the SBA application. Applying early helps keep recovery options open, as some federal assistance programs may only become available after SBA makes a loan determination. If SBA cannot approve a loan, the business may be referred to other FEMA or federal recovery programs. Completing the application also helps prevent delays later in the recovery process and ensures the business has access to every possible resource to support its long-term recovery.

How to Apply

Businesses and nonprofits may apply:

Applicants should collect key documents such as insurance information, tax records, financial statements, and property ownership documentation.

Stay Informed

SBA programs and eligibility can vary by disaster and location. Businesses should:

  • Visit SBA's website for detailed, current loan information
  • Monitor TEMA updates, FEMA announcements, and local emergency communications
  • Begin their application as early as possible to avoid processing delays