Business and homeowners hurt by Helene floods can apply for low-interest federal loans

The U.S. Small Business Administration is stepping in to help Tennesseans in need after the historic floods.

Residents in Carter, Cocke, Greene, Johnson, Sevier and Unicoi counties can apply to the federal agency for disaster loans, which are low-interest, long-term loans. The interest rates can be as low as 2.81% for individuals and 4% for businesses over a 30-year period.

The agency helps not just small businesses, but also homeowners and private nonprofits, Francisco Sánchez, associate administrator for the U.S. Small Business Administration’s office of Disaster Recovery and Resilience, told Knox News.

Disaster survivors who are approved for a loan are not required to make any payments for a year and there’s no interest accrued during that time, Sánchez said.

The approval process takes seven to 10 days, on average, he said.

Can homeowners and renters apply for a Helene flood loan?

Homeowners can apply for loans of up to $500,000 for home replacement or primary repairs. Both renters and homeowners are eligible for loans of up to $100,000 to pay for personal property repair or replacement.

What kind of federal flood loans are businesses eligible for?

Both businesses and private nonprofits can apply for federal loans of up to $2 million for losses that are not covered by insurance. Loans can help close the gap when insurance only partially covers the damage.

There also are loans available for economic injury, Sánchez said, meaning for businesses owners who did not have physical damage but are suffering from disaster-related losses. This could be because of roads being cut off, employees not being able to make it to work or customers not being able to come in.

More information, including an application for the loan, can be found at sba.gov/funding-programs/disaster-assistance.

Areena Arora, data and investigative reporter for Knox News, can be reached by email at areena.arora@knoxnews.com. Follow her on X @AreenaArora and on Instagram @areena_news.

This article originally appeared on Knoxville News Sentinel: U.S. Small Business Administration offers flood loans in Tennessee