Small Business Loans in Tennessee
687,913 small businesses. 1,564 SBA 7(a) loans approved in FY2024. Here's what the Tennessee financing landscape looks like — and how to navigate it.
Small businesses
687,913
SBA Office of Advocacy, 2024 Profile
SBA 7(a) loans — FY2024
1,564
$667.2M total approved
Avg SBA loan size
$427K
FY2024 · SBA FOIA dataset
Population
7,126,489
U.S. Census Bureau, 2025 estimate
Tennessee has 688,000 small businesses employing 1.3 million workers — 44.0 percent of the state's private workforce. In FY2024, Tennessee small businesses received 1,564 SBA 7(a) loans totaling $667 million, with an average loan size of approximately $427,000. Tennessee's business-friendly environment — no state income tax on wages, low cost of living, and central logistics position — has attracted significant corporate relocation and SMB migration, particularly to Nashville and the greater Middle Tennessee region.
Nashville has become one of the South's most important healthcare business hubs — HCA Healthcare, Community Health Systems, and dozens of healthcare management companies operate from the city, creating a large healthcare SMB supplier and services ecosystem. Music and entertainment remain uniquely concentrated in Nashville but represent a smaller share of SMB financing demand than healthcare, logistics, and construction. Tennessee's logistics position — I-40/I-24/I-65 crossing at Nashville — drives a substantial trucking and warehousing SMB sector statewide.
Tennessee has no statewide commercial financing disclosure law. The state's pro-business regulatory environment and growing SMB base make it one of the more active alternative financing markets in the Southeast. Data sourced from the SBA Office of Advocacy (advocacy.sba.gov), SBA FOIA loan dataset (data.sba.gov), U.S. Census Bureau (census.gov), and the Federal Reserve Small Business Credit Survey (fedsmallbusiness.org).
Top SMB industries in Tennessee
#1
Health Care & Social Assistance
Nashville's healthcare industry concentration has made Tennessee a national hub for healthcare management, insurance, and services SMBs. Primary care, behavioral health, and home health businesses statewide access SBA 7(a) and equipment financing.
#2
Construction
Tennessee's population growth — especially in Nashville and Knoxville — sustains an active construction SMB market. Equipment financing, materials working capital, and SBA 7(a) for business expansion are standard tools.
#3
Transportation & Warehousing
Tennessee's central highway position (I-40 runs east-west through the state) supports a large trucking and logistics SMB sector. Memphis's FedEx concentration and the Tennessee River's barge traffic add freight and warehousing SMB density.
#4
Manufacturing
Tennessee's manufacturing sector spans automotive (Volkswagen, Nissan plants with extensive supplier ecosystems), food processing, and medical devices. Equipment financing and SBA 7(a) serve SMB suppliers in these industries.
#5
Accommodation & Food Services
Nashville's tourism and entertainment economy and Gatlinburg/Smoky Mountains tourism drive a large hospitality SMB sector. Revenue-based financing and working capital lines suit the seasonal revenue patterns of Tennessee tourism businesses.
Tennessee commercial financing disclosure
StatuteTennessee — no statewide CFDL enacted as of 2026-05-20
What this means for borrowersTennessee does not currently have a statewide commercial financing disclosure law. Commercial lending in Tennessee is governed primarily by federal law and lender-specific agreements. ClearValue Lending monitors Tennessee legislative developments.
CVL operating note: ClearValue Lending routes Tennessee SMB applicants to lender partners operating across all Tennessee markets. Tennessee has no statewide commercial financing disclosure law; lender partners comply with applicable federal requirements.
SBA 7(a) lending in Tennessee — FY2024
Computed from SBA FOIA loan-level dataset (data.sba.gov). Aggregate of all FY2024 approved 7(a) loans with project state = TN.
| Metric | Value |
|---|---|
| Total 7(a) loans approved — FY2024 | 1,564 |
| Total dollar volume — FY2024 | $667.2M |
| Average loan size — FY2024 | $427K |
Source: SBA FOIA 7(a) loan dataset — data.sba.gov, as of March 31, 2026. Reflects FY2024, the most recent full fiscal year aggregated here. SBA 7(a) is one program; lenders also deploy conventional, SBA 504, USDA B&I, and private-market products.
National SBA program context (FY2025)
Nationwide, the SBA guaranteed $44.8 billion across roughly 84,400 loans in FY2025 (Oct 2024–Sept 2025), one of the program's highest-volume years. Effective May 2026, the SBA also doubled the cumulative 7(a)/504 loan limit to $10 million per borrower — expanding access for established businesses seeking repeat or larger-scale financing.
Sources: SBA FY2025 press release · SBA May 2026 loan-limit rule.
Tennessee small business financing — common questions
How many small businesses are in Tennessee? +
Tennessee has approximately 688,000 small businesses, representing 99.5 percent of all businesses in the state. They employ 1.3 million workers — 44.0 percent of Tennessee's private workforce. Source: SBA Office of Advocacy, 2024 Small Business Profile.
How active is SBA 7(a) lending in Tennessee? +
Tennessee received 1,564 SBA 7(a) loan approvals in FY2024, totaling $667 million. The average loan size was approximately $427,000. Source: SBA FOIA loan dataset, FY2024 aggregate.
Does Tennessee have a commercial financing disclosure law? +
No. Tennessee has not enacted a statewide commercial financing disclosure law as of 2026. Commercial lending is governed primarily by federal law and lender agreements.
What financing products work best for Tennessee small businesses? +
Healthcare businesses use SBA 7(a) and equipment financing. Construction and logistics firms use equipment financing. Hospitality businesses use revenue-based financing for seasonal cash flow. The right product depends on your industry, revenue, and use of funds.
Is ClearValue Lending available in Tennessee? +
Yes. ClearValue Lending routes Tennessee SMB applicants to lender partners operating across Nashville, Memphis, Knoxville, Chattanooga, and statewide. We are a funding platform, not a lender or broker.
What are typical eligibility minimums for Tennessee SMB financing? +
SBA 7(a) typically requires 2+ years in business, 650+ FICO, and $150,000+ annual revenue. Revenue-based financing may be available with 500+ FICO, 6+ months in business, and $10,000+ monthly revenue. All financing is subject to lender underwriting on the full file.
Sources & methodology
- SBA Office of Advocacy — 2024 Small Business Profile: Tennessee — SMB count, top industries, employment data. Underlying: Census 2021 data.
- SBA FOIA 7(a) Loan Dataset — FY2024 Tennessee Aggregate — FY2024 approval count and dollar volume, projectstate=TN, approvalfy=2024.
- U.S. Census Bureau — State Population Estimates (2025) — Tennessee population: 7,126,489 (July 1, 2025 estimate).
- Federal Reserve Small Business Credit Survey — 2026 Report on Employer Firms (2025 survey data) — National and state-level small business credit conditions, financing gaps, and lender utilization.
Editorial disclaimer: Data on this page reflects the sources cited above as of May 22, 2026. SBA 7(a) loan counts and dollar volumes are computed from the public SBA FOIA dataset. Small business counts use Census 2021 data as published by SBA Office of Advocacy in November 2024. Population figures are July 1, 2025 Census Bureau estimates. All financing is subject to lender partner approval. Not legal, tax, or financial advice.
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