Tennessee lenders offer small business loans backed by the federal government to help build successful companies.
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Biglaw Investor connects you with small business lenders who can help you expand your business, whether through working capital or via acquisition. A small business loan loan is a great way to grow your business—but it can be hard to know where to start. Our small business lenders offer an experience specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your business needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
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.
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:
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.
| 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 |
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:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Pinnacle Bank was started in 1934 as a community bank in Georgia to serve and meet the financial needs of the community. Now with over 20 branches in the state Pinnacle Bank is able to meet the needs of its customers with its tools and products, including small business loans.
We reached out to Pinnacle Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in 1889 as a community bank to provide for local individuals and businesses, United Midwest Savings Bank has over 130 years of experience in meeting customers’ needs. With 5 branches and 1 administrative office in the Columbus, Ohio area, United Midwest Savings banks can help all of its customers.
We reached out to United Midwest Savings Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in 1866 and based out of Columbus, Ohio, with branches in 11 states and $179 billion in assets to meet its customers’ needs, The Huntington National Bank has much to offer. Huntington National Bank has a number of products and services to meet personal and business banking needs.
We reached out to Huntington National Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Started in 1876, Cadence Bank has almost 150 years of experience in helping its customers in Mississippi, Texas, Florida, Missouri, Tennessee, Florida, Georgia, Alabama, Arkansas, and Oklahoma meet their needs. Cadence Bank offers a number of tools, including small business loans and personal banking tools like checking and savings accounts.
We reached out to Cadence Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Having access to funds is important. For many companies, having advice and guidance from trusted and experienced leaders is even more important. In Tennessee, there are a few key resources to help small businesses make decisions and grow.
One of the best resources is SCORE. It is an organization built by successful business owners who share their guidance and insight with small businesses just getting started or those hoping to grow. This organization allows companies to work with mentors, attend training, engage in webinars, and get support for their unique needs. It has a main office in Chattanooga and lots of information right on its website.
The Small Business Administration in Tennessee is another valuable resource providing guidance and support for a wide range of important topics, including building businesses, formation, hiring employees, managing risks, and meeting compliance requirements. Local help and online support are available.
If you want to find the best small business loans in other states, click on your state below.
Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
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