Across Tennessee—from Nashville to Memphis, Knoxville to Chattanooga—small businesses are the foundation of local economies. Whether you're launching a startup, expanding operations, or upgrading facilities, SBA‑backed loans offer flexible, affordable financing to meet your goals.
Provides up to $5 million
Can be used for working capital, equipment, refinancing debt, real estate, or acquisition
Offers long repayment terms and competitive interest rates
Best suited for established businesses with strong credit and reliable financials
Designed for purchasing major assets like real estate and heavy machinery
Split funding: private lender, Certified Development Company (CDC), and borrower
Fixed rate loans with long-term repayment (up to 25 years)
Ideal for facility investment or large equipment acquisition
Loans up to $50,000 via nonprofit intermediaries
Supports small-scale expansion—equipment, inventory, or marketing
Often includes mentoring and more flexible qualification terms
Suitable for startups and micro-businesses
| Loan Type | Ideal For |
|---|---|
| SBA 7(a) | Businesses expanding locations or operations |
| SBA 504 | Owners acquiring property or heavy equipment |
| SBA Microloan | Small startups, kiosks, food trucks, or solo operators |
Many Tennessee community and regional banks serve as SBA‑preferred lenders, offering faster decisions
Small Business Development Centers (SBDCs) across the state provide free counseling, financial review, and loan‑packaging assistance
Organizations like SCORE offer advisory services from experienced business mentors
Loans are processed locally, adding insight into Tennessee’s market dynamics and business environment
Define your financing need—working capital, equipment, property, or inventory
Choose the best SBA loan type (7(a), 504, or microloan)
Find an SBA‑approved lender or CDC in Tennessee
Prepare documentation: business plan, tax returns, financials, vendor quotes
Prequalify with several lenders to compare terms and rates
Complete the formal loan application with support from SBDC or SCORE
Close the loan and implement your project plan
| Advantages | Considerations |
|---|---|
| Low down payments and long repayment terms | Requires thorough documentation and strong credit |
| Wide range of uses—property, equipment, working capital | Approval timeline may take several weeks |
| Competitive interest rates, backed by SBA | Not ideal for urgent or small short-term funding needs |
| Access to free business counseling and support | Borrowers need clear plans and financial readiness |
A Nashville-based bakery needed $250,000 to expand and purchase high-volume ovens. They:
Secured an SBA 7(a) loan to fund equipment and renovation
Accessed mentorship through the local SBDC for their business plan
Used an SBA microloan to finance marketing and seasonal product launches
Within nine months, the new location achieved 50% higher sales and created four full-time jobs.
To improve approval odds:
Maintain personal and business credit scores above 650
Keep at least two years of clean financial statements and tax returns
Gather detailed quotes for equipment, build-outs, or property
Develop a strong business plan outlining revenue projections and loan use
Connect early with SBDC advisors or SCORE mentors for preparation
Apply to multiple lenders to compare loan terms and fees
SBA loans are a powerful financing tool for Tennessee small businesses—offering scale, favorable repayment terms, and access to expert support. By understanding each loan type, preparing carefully, and leveraging local resources, you can secure the capital needed to scale with confidence.
Determine your funding goal—expansion, equipment, or working capital
Choose the SBA loan type that fits your objective
Prepare business documentation and financial history
Meet with lenders and advisors for prequalification
Apply, close the loan, and grow your Tennessee business
Need assistance preparing your application or choosing the right lender? Reach out to your local SBDC or SCORE mentor to ensure a strong submission and funding path forward.