Key Terms

Small businesses have a wide range of resources available to them that can help with financing, budgeting, debt management, and more.
If you do not have a business credit history established, the owner’s personal credit score could be a factor in determining if the borrower qualifies.
Borrowers should consider their credit score along with the ability to repay these loans before choosing a loan, with careful attention paid to the actual terms and conditions.

Tennessee is made up of three separate areas, called the Grand Divisions of East, Middle, and West Tennessee. Each one is different in terms of culture as well as industry. There’s no doubt that the largest cities of Nashville, which is also the capital, Memphis, Clarksville, Chattanooga, and Knoxville, are each unique, diverse places to live. The state, which has over 6.9 million people, is also well-respected for its culture and that diversity. It’s also a beautiful state that is open to the Blue Ridge Mountains along the eastern border to the plains of the other regions, which helped the state become an important agricultural center. It’s home to the Great Smoky Mountains National Park, too. Called the Volunteer State, there’s much to love about living and operating a small business here.

When it comes to the state’s industries and sectors, there are numerous present. Agriculture remains a prominent one, including poultry, corn, and soybeans. The area is also a strong electronics, technology, automotive, music, and healthcare sector with a growing tourism industry. All of these big industries are thriving, but so are the many small businesses present in the state. The U.S. Small Business Administration states there are 652,795 small businesses in the state, producing jobs for 1.2 million people. Those jobs have a payroll of $40,020,637. Many households depend on small businesses to meet their needs.

When it comes to building a strong business, capital is often one of the most important tools to enable it. Small business lenders in Tennessee are readily available to help support most needs. The U.S. Small Business Administration’s latest three years of data shows there are 1,482 small business loans in Tennessee active, with a total loan volume of $1,221,261,837. Those businesses can use these funds for many things, including expansion, launching a new service, marketing the company, and hiring more employees. The average loan size is quite large at $824,063. There’s no doubt the state’s small businesses are dependent on these funds for a wide range of things.

Show Me Lenders

How small business loans work in Tennessee

As a small business is established, there is a need for capital to purchase materials and products. There is often the need for a third-party resource, and that is where small business lenders in Tennessee come into the picture. These lenders provide loans specific to the needs of smaller companies, usually those with under 100 employees. The lenders may offer a range of loan types and amounts based on the amount of risk present. Borrowers, which are generally the business and sometimes its owner, agree to repay the amount borrowed through the loan along with interest on it.

Tennessee small business loans come in a variety of forms. Many times, qualified businesses can see a significant range of options to choose from when it comes to these loans. For example, some loans are term loans with a fixed monthly payment for 5 to 10 years. The lender provides capital upfront the company can use as it needs. Other types of loans are a business line of credit or may be tied to assets, such as equipment financing. The most common types of small business loans in Tennessee include:

Bank loan
SBA loans from SBA.gov
Business term loan
Business line of credit
Equipment financing

How do lenders decide if they should lend to a company? Not all businesses qualify for a small business loan, and some may qualify at a higher interest rate or limited borrowing power. This is all dependent on the qualifications the lender sets, which can range widely by lender and loan type. Most often, lenders want to see a business plan that outlines the ownership of the company, provides a market analysis and offers a range of details about the company’s financial health. This often includes a profit and loss statement, balance sheet, bank account statements, and any other data that helps to show that the company is viable and has the ability to generate a profit.

In the short term of startup, you might be able to look into community development agencies, nonprofit grants, and other business grant funds to get things open. Over time, you might be eligible for a loan amount from a lender.

Most entrepreneurs and small business owners just getting their companies started will use their own funds rather than business financing. Even with a business plan, a lender wants to see that you have a track record of doing business and bringing in revenue, since that revenue will be your means of repaying the loan. Once you have some track record established, however, you may be able to look into other financing options.

As a business owner, you can apply for small business loans in Tennessee and work closely with lenders to find the best type of loan to meet your needs. Most lenders are flexible and willing to work closely with borrowers to structure a loan that meets their monthly needs while providing them with the financial access they need. The key here is to know you have options and should compare lenders to find the best small business lenders in Tennessee to work with before making a decision.

10 Biggest small business loan lenders in Tennessee

Tennessee small business loan lenders ranked by loans issued in the state.

Rank	Bank Name	# of Tennessee Loans	Avergage Interest Rate	Average Loan Size
1	U.S. Bank	57	6.20%	$248,830
2	Pinnacle Bank	46	5.37%	$1,243,015
3	United Midwest Savings Bank	27	6.00%	$140,000
4	The Huntington National Bank	25	5.74%	$309,876
5	Cadence Bank	19	5.32%	$413,289
6	CapStar Bank	19	5.38%	$1,008,711
7	Newtek Small Business Finance	17	6.22%	$595,912
8	Live Oak Bank	15	5.00%	$2,524,000
9	Wells Fargo Bank	15	6.82%	$411,013
10	Regions Bank	14	4.67%	$1,280,121

Get Small Business Loan Quotes

1. U.S. Bank

First coming into existence in 1863 as the First National Bank of Cincinnati, U.S. Bank now operates in 26 states across the country. U.S. Bank offers a number of products and services to meet customers’ needs, including small business loans and personal banking solutions, including checking and savings.

We reached out to U.S. Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

Preferred SBA Lender
Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
Loans can be used for working capital, business acquisition, equipment purchases or other purposes.