COVID-19 HUD Loan Initiative

Due to an overwhelming response, the application portal is temporarily closed for the COVID-19 HUD Loan Program. Applications that have already been submitted are currently being reviewed.

HUD Loan Initiative

(Funding source: $1,000,000 of HUD Funds)

$1,000,000 of the CHA 90-Day Stabilization Fund will create loans for small businesses that comply with HUD requirements. Loans are discretionary.

Preferred deadline to apply by: June 30, 2020

Amounts: From $25,000 up to $100,000

Uses: Variety of eligible uses.

*Priority will be shown to businesses directly impacted by Mayor Berke’s Executive Orders, including restaurants, fitness centers, barbershops, hair salons, tanning salons, childcare centers, eyelash salons, tattoo shops, body piercing shops, day spas, retail stores, entertainment & recreation facilities, indoor rock climbing, craft/art businesses, theaters, concert venues, etc.) As these funds are limited, submission of an application does not guarantee funding.


  • Business’ primary location must be within the Chattanooga city limits. 
  • Available to businesses located within a low-to-moderate income census tract or businesses that hire people from low-to-moderate income census tracts.
  • Available to businesses for expansion.
  • Available to businesses to retain jobs.
  • A business may receive a single COVID-19 loan award.

Examples of Documentation for a Completed Application:

  • Certificate of Existence from the State of Tennessee (if available and applicable)
  • Business license from Hamilton County
  • Business license from the City of Chattanooga
  • A written statement with a description of how the business was adversely impacted by public policies regarding Coronavirus prevention. Must be signed and dated by business owner, manager, or designee.
  • A written description of how the funds will be used. 
  • Priority will be given to applicants that can show a plan to use the funding to hire or retain workers.
  • Completed application
  • Compliance with HUD regulations related to job creation or retention with respect to low-to-moderate income census tracts
  • Any associated loan documents required by HUD or the Southeast Tennessee Development District.

Loan Terms:

  • Zero percent (0%) interest,  zero (0) payments for six months
  • Loan amounts will vary from $25,000 up to $100,000
  • Loan terms may vary