Small Business Loans & SBA Loans in Tennessee

A beautiful state with a growing economy, Tennessee is just the place to open your small business’ doors, and a loan can make it possible!


Types of Loans in Tennessee

Significantly more startups survive their first year in Tennessee than the national average, which showcases why the Volunteer State is a great home to many small businesses. It’s the home of country music, but Tennessee is also a rich, diverse location for entrepreneurs at all levels of experience. A business loan can help your business set itself up for success in Tennessee.

SBA Loans

A Small Business Administration (SBA) loan is a type of loan that is partially backed by the federal government but serviced through private lenders, which means these loans often have relatively low interest rates.

Line of Credit

With a revolving line of credit, you can pay for business expenses on credit and repay the balance back in monthly installments.

Term Loan

If approved for a term loan, your business receives a lump disbursement that it repays over several years, including any interest and fees.

Equipment Finance

In equipment financing scenarios, you obtain needed equipment right away and then pay down the price of the machinery in installments.

Accounts Receivable Financing

When you apply for accounts receivable financing, you are seeking a loan that is worth an amount equal to what you owed from unpaid invoices.

Tennessee Business Loan Options

Several organizations service loans to small businesses that set up shop in Tennessee.

Pathway Lending is a local banking option for Tennessee businesses that focuses specifically on commercial loans and financing local businesses.

Along with personal banking services, F&M Bank also has several financing options for small businesses and branches in many regions across Tennessee.

The Mid-Cumberland Area Development Corporation (MADC) is a non-profit that connects small businesses in Middle Tennessee with financing, and they are proficient in federal, state, and local loan programs.

Pinnacle Bank has over 20 branches across Tennessee, offering multiple loan products including SBA 7(a) and SBA 504 loans.

Cadence Bank offers multiple loan products for small businesses including term loans, lines of credit, and SBA loans.

Huntington National Bank is a leading lender for SBA loans in Tennessee and other states in the nation.

How to apply for a small business loan

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

See which credit cards you qualify for before choosing the one that best suits your business needs and offers the cash rewards you’re looking for.

STEP
3
Get funded.

Once you choose a card, you can get approved in as little as 7-10 days.

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Speak with a Tennessee representative

FAQ about Small Business Loans in Tennessee

Tennessee’s Department of Economic and Community Development keeps an extensive library of easy-to-browse resources, including mentorship programs and some granting initiatives. The Tennesseed Fund is an organization aimed at setting up small businesses with interested angel investors. The Nashville Entrepreneur Center is an amazing accelerator program for Nashville-area small business owners, especially those in their early stages.

  

In effort to revitalize the Nashville economy following the pandemic, the city offers grants for small businesses operating in the metro Nashville area. In addition, USGrants.org lists a bevy of grants available for Tennessee businesses, especially those involved in agriculture or childcare. The United States Department of Agriculture (USDA) also offers some grants for farmers in rural parts of Tennessee on a rolling basis.

 

In order to qualify for a loan in Tennessee, you first need to decide on a corporate structure, such as an LLC or S-Corp. Depending on your structure, you might need to register with the Secretary of State. Note that, if your business earns more than $3,000 in annual taxable income, you will generally need to apply for a business license in Tennessee. Once your business is legally created, you can apply for funding. For this stage, you’ll need to gather your business plans, company financial data, and your credit report, since most financiers will base qualification decisions on these documents.

It is well worth it to spend time on determining what loan is best for your Tennessee small business. Consider interest rates, fees, how long it takes for the loan to mature, and how the loan can help you take advantage of Tennessee’s thriving economy. Additionally, you should also look at how long it takes for the financier to make approval decisions. You can find much of this information in minutes, at no cost, using the Lendio platform.

Because of its low cost of living and low business tax rates, a Tennessee business loan can theoretically help your company more than the same amount in a more expensive, high-tax state. Remember, too, that Tennessee is a tourist hotspot and has some of the biggest centers of commerce in the South. This makes the state an ideal place for a business loan to take your business dreams further, faster.

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
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