BUSINESS FINANCING · TN

Business Financing Guide for Sumner County, Tennessee

This guide helps solo contractors and small business owners in Sumner County, Tennessee understand their real financing options — from local credit unions and CDFIs to ITIN-friendly lenders and the Tennessee Small Business Development Center network. We focus on the local intermediaries who actually serve Gallatin, Hendersonville, Portland, and the surrounding communities. Federal programs like SBA loans are helpful context, but the people and organizations closest to you are where your conversation should start. Take your time, compare your options, and never feel pressured to sign anything quickly.

§ 01 — What it is

What Is Business Financing?

Business financing is any funding that helps you start, run, or grow a business. It can take several forms: - **Term loans**: You borrow a set amount and repay it over months or years, usually with interest. - **Lines of credit**: A flexible pool of money you draw from when needed and repay as you go — useful for covering slow seasons or supply costs. - **Microloans**: Smaller loans (often $500–$50,000) designed for early-stage businesses or sole proprietors who may not qualify for traditional bank loans. - **Equipment financing**: Loans or leases specifically tied to a piece of equipment — the equipment itself often serves as collateral. - **SBA-guaranteed loans**: Loans made by local lenders but backed in part by the U.S. Small Business Administration, which reduces the lender's risk and can make it easier for you to qualify. - **Grants**: Money that does not need to be repaid — competitive and limited, but worth pursuing. For most small contractors and real-estate investors in Sumner County, the right starting point is a modest loan or line of credit from a community lender who understands the local economy — not a large national bank or an online lender you found through an ad.

§ 02 — Who qualifies

Who Qualifies? Sumner County's Local Economy

Sumner County's economy is rooted in construction, healthcare, logistics, light manufacturing, and a fast-growing residential real estate market. Communities like Hendersonville, Gallatin, White House, Portland, and Goodlettsville are home to thousands of solo contractors, landscapers, HVAC technicians, home remodelers, childcare operators, and small retail owners. **You may qualify for local business financing if:** - You have operated your business — even informally — for at least 6–12 months - You can show some business income, even through bank statements or invoices - You have a business bank account (or are willing to open one) - You have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) **ITIN borrowers**: Several lenders and CDFIs in the Middle Tennessee region serve borrowers who use an ITIN rather than an SSN. You do not need to be a U.S. citizen to access many of these programs. See Section 4 for specific lenders. **New businesses**: If you have been operating for less than a year, microloan programs and CDFIs are generally more accessible than traditional bank loans. A strong business plan and clear cash-flow projections can go a long way. **Credit history**: Many community lenders look at your full picture — character, relationships, cash flow — not just your credit score. Don't assume a low score disqualifies you.

§ 03 — What you need

Documents You Will Typically Need

Every lender is a little different, but gathering these documents before you apply will make the process smoother: **For most loan applications:** - Government-issued photo ID (driver's license, passport, or consular ID/matrícula consular) - ITIN or SSN - Business bank statements (last 3–12 months) - Personal bank statements (last 3 months) - Most recent 1–2 years of personal tax returns (Form 1040) - Business tax returns if your business files separately (Form 1120, 1120-S, or Schedule C) - Profit & loss statement or simple income/expense summary - List of any existing business debts **For SBA-backed loans, also prepare:** - Business plan or written description of your business model - Cash flow projections (12 months) - Business licenses or registrations (Tennessee Secretary of State, local business license) - Lease agreement if you rent a commercial space **For equipment financing:** - Quote or invoice for the equipment you want to purchase - Description of how the equipment will generate revenue **Tip**: Even if your records aren't perfect, bring what you have. A good community lender or CDFI loan officer will help you organize what's missing. That's part of their job.

§ 04 — Where to start in Sumner County

Local Lenders, CDFIs, Credit Unions, and SBA Resources That Serve Sumner County

These are real organizations with a track record of serving small businesses and contractors in Sumner County and the broader Middle Tennessee region. --- **Community Development Financial Institutions (CDFIs)** - **Pathway Lending** (Nashville, serves all of Middle Tennessee including Sumner County): Tennessee's leading CDFI for small businesses. Offers term loans, lines of credit, and SBA microloans to businesses that may not qualify at traditional banks. Known for working with borrowers who have limited credit history. Website: pathwaylending.org - **LiftFund** (serves Tennessee including Sumner County): A national CDFI with a strong presence in the South. Offers microloans from $500–$1 million and actively serves ITIN holders and immigrant entrepreneurs. Bilingual services available. Website: liftfund.com - **SCORE Nashville Chapter** (free mentoring, not a lender): Paired with CDFI and SBA referrals, SCORE volunteers can help you prepare a business plan and connect you to the right lender. Website: score.org/nashville --- **Local and Regional Credit Unions** - **Tennessee Valley Federal Credit Union (TVFCU)**: Serves the broader Tennessee region and offers small business loans and lines of credit with member-friendly terms. - **Ascend Federal Credit Union** (headquartered in Tullahoma, with branches across Middle Tennessee): Offers business checking, savings, and small business loans. Membership is broadly available to Tennessee residents. - **Avenue Bank / Reliant Bank** (now part of SouthState Bank, with Sumner County presence): Formerly a community bank with strong local roots — now operating under SouthState but retaining local loan officers who know the Sumner County market. - **Tennessee Commerce Bancorp successor institutions** and **local community banks** like **TriStar Bank** (headquartered in Dickson but active in Middle Tennessee) offer construction and real-estate-oriented small business lending. --- **SBA District Office** - **SBA Tennessee District Office** (Nashville): Covers all of Sumner County. They do not lend directly but can refer you to SBA-approved lenders, connect you to the Small Business Development Center network, and help you understand SBA 7(a) and 504 loan programs. Phone: (615) 736-5881. Website: sba.gov/offices/district/tn/nashville --- **Small Business Development Centers (SBDCs)** - **Tennessee SBDC at Volunteer State Community College** (Gallatin — right in Sumner County): This is your most local resource. Free one-on-one advising, help preparing loan applications, business plan reviews, and referrals to lenders. They serve Sumner County businesses directly and at no cost. Phone: (615) 230-3591. Website: tsbdc.org --- **ITIN-Friendly Lenders** - **LiftFund** (listed above) explicitly accepts ITIN borrowers and has bilingual staff. - **Pathway Lending** works with ITIN borrowers on a case-by-case basis — ask directly. - **Self-Help Credit Union** (active in Tennessee): A national CDFI credit union with a mission to serve underserved borrowers including immigrants. Website: self-help.org --- **State Programs** - **Tennessee Small Business Investment Company (SBIC) programs** and **INCITE Co-Investment Fund** (for growth-stage businesses) are administered through the Tennessee Department of Economic and Community Development (TNECD). Website: tn.gov/ecd

§ 05 — What to avoid

Tennessee State-Specific Regulatory Notes

Understanding Tennessee's rules helps you protect yourself and stay compliant as a borrower and business owner. **Business Registration** - Most businesses operating in Tennessee must register with the **Tennessee Secretary of State**. LLCs and corporations file Articles of Organization or Incorporation. Sole proprietors operating under a trade name (DBA) register at the county level with the **Sumner County Register of Deeds** in Gallatin. - A valid Tennessee business license is required for most businesses with gross receipts over $3,000. These are issued by the **Sumner County Clerk's Office**. **Interest Rate and Lending Regulations** - Tennessee sets a **maximum interest rate of 10% per year** for most consumer and business loans under state usury law (T.C.A. § 47-14-103), unless the lender is a federally chartered bank or the borrower agrees in writing to a higher rate. Many legitimate commercial loans do involve negotiated rates above this floor — make sure any agreed rate is clearly stated in writing. - Tennessee does not have a state-level small business lending registry, so some online lenders can operate with less oversight. Stick to lenders with a physical presence or a CDFI certification. **Contractor Licensing** - If you are a contractor bidding on projects over $25,000 in Tennessee, you are required to hold a **Tennessee Contractor's License** issued by the Tennessee Board for Licensing Contractors. Lenders financing contractor businesses will often ask for proof of licensure. Website: tn.gov/commerce/boards/contractors **Taxes** - Tennessee has no personal income tax on wages (as of 2021), but businesses pay the **Tennessee Franchise and Excise Tax** on net worth and net income. This is separate from federal self-employment taxes. Make sure your tax filings are current before applying for a loan — lenders will ask.

§ 06 — Ask a question

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