Business financing in Macon County.

Small business financing is money you borrow — or receive as a grant — to start, run, or grow a business. It can cover things like buying equipment, hiring workers, purchasing inventory, making repairs to a property, or bridging a slow season when cash flow dips.

Financing comes in several forms:

• **Term loans** — You borrow a fixed amount and repay it over time with interest. This is the most common type.

• **Lines of credit** — A flexible pool of money you draw from as needed, like a business credit card but usually with lower interest.

• **Microloans** — Small loans, often under $50,000, designed specifically for newer or smaller businesses. Many CDFIs and nonprofits offer these.

• **SBA-guaranteed loans** — The U.S. Small Business Administration (SBA) doesn't lend money directly. Instead, it guarantees a portion of a loan made by a local bank or credit union, which reduces the lender's risk and makes it easier for you to qualify.

• **Grants** — Money you don't have to repay. Grants are competitive and usually tied to specific industries, purposes, or demographics.

• **ITIN-based loans** — Some lenders accept an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. This is especially important for immigrants and mixed-status families.

Understanding what type of financing fits your situation is the first step — before you talk to any lender.

Macon County is a rural community in northern Middle Tennessee, with an economy built around agriculture, manufacturing, construction trades, retail, and small service businesses. Lafayette is the county seat. Many residents work independently — as contractors, farmers, truckers, or self-employed tradespeople — and many are part of the area's growing Latino community.

**General eligibility factors most lenders look at:**

• Time in business (some lenders require 1–2 years; microloans and CDFIs are often more flexible)

• Personal credit score (a score above 600 helps, but CDFI lenders may work with lower scores)

• Business revenue or projected revenue

• Collateral (property, equipment, or vehicles you own that can back the loan)

• A business plan or clear explanation of how the money will be used

**For Macon County specifically:**

- If you work in construction or skilled trades, lenders often view your contractor's license and project contracts as strong supporting documents.

- Farmers and agricultural businesses may qualify for USDA Rural Development loans and Farm Service Agency (FSA) programs — both have a presence in Tennessee.

- Self-employed individuals with irregular income can still qualify with two years of tax returns showing consistent work.

- Immigrants with an ITIN (not a Social Security number) can access financing through ITIN-friendly lenders and CDFIs — more on that in Section 4.

- New businesses with little history may do best starting with a microloan or a nonprofit lender before approaching a bank.

Every lender has slightly different requirements, but gathering these documents before you apply will save you time and stress. Organize them in a folder — paper or digital — so you're ready.

**Identity and legal documents:**

• Government-issued photo ID (driver's license, passport, or consular ID)

• Social Security number or ITIN

• Business formation documents (LLC operating agreement, DBA registration, articles of incorporation, etc.)

• EIN (Employer Identification Number) from the IRS — free to obtain at irs.gov

**Financial documents:**

• Last 2 years of personal federal tax returns

• Last 2 years of business tax returns (if your business has been open that long)

• 3–6 months of recent bank statements (personal and/or business)

• Profit-and-loss statement (a simple summary of income and expenses — your accountant or a CDFI counselor can help you prepare one)

• Current list of debts (loans, credit cards, leases)

**Business documents:**

• Business plan or written description of how you'll use the loan

• Contracts, invoices, or purchase orders showing demand for your work

• Contractor's license (for trades)

• Lease agreement or proof of business address

• Equipment quotes or vendor estimates (if buying equipment)

**Tip:** If you're missing some documents, don't give up. Community lenders and CDFIs are used to working with applicants who have gaps, and they can often help you get what you need before you formally apply.