Tennessee filed a disaster declaration request with the federal Small Business Administration that would allow small businesses to apply for low-interest federal loans if they have been hurt by COVID-19 or its economic impact.
Last week, President Donald Trump announced that small businesses impacted by the coronavirus would be eligible for disaster loans. A business could apply for up to $2 million worth of loans.
Gov. Bill Lee said in a news conference Wednesday afternoon this would apply to most of the state’s businesses.
“[Small business] is the backbone of our economy, and it’s something we have a great deal of concern about going forward,” Lee said. “Ninety-four percent of our private sector is made up of small businesses with fewer than 50 [employees]. These are, in fact, companies that when economies are hit hard, even if it’s a short term hard hit on the economy, it impacts small businesses. We’re seeing it happen all across the state even today.”
To stop the spread of the coronavirus, Nashville ordered bars to shut down and implemented heavy restrictions on restaurants, which will significantly reduce profits. Some establishments throughout the state have closed voluntarily, and others have seen reduced business because of fear of getting the coronavirus. Other states have implemented stricter policies, which go as far as a forced shut down of all nonessential businesses.
Lee said these loans will be crucial for businesses to get through this crisis, stabilize and return to profitability. He said he has been in contact with businesses and people who represent businesses to work on state-level solutions to help them through this crisis.
The governor also introduced an amended budget proposal today, which included more funding to combat the coronavirus. This included $150 million in health and safety funds, $200 million for counties and $350 million for the rainy day fund.
Lee said it is unclear how long this pandemic will last or whether there will be a financial crisis, but it is important to prepare for a serious economic downturn in case it happens.
As of Wednesday afternoon, the Tennessee Department of Health reported 98 positive COVID-19 cases.
COVID-19 is a respiratory disease caused by a novel coronavirus. The disease has caused at least 115 deaths in the U.S. COVID-19 symptoms appear within two to 14 days after exposure and include fever, cough, runny nose and difficulty breathing.
Most people who have it develop only mild symptoms. But some people, usually the elderly and those with other medical complications, develop more severe symptoms, including pneumonia, which can be fatal.
