The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Kentucky regarding the upcoming March 26 deadline for applying for federal disaster loans. These loans aim to mitigate economic losses caused by severe storms and tornadoes on March 14-15, 2024.
The disaster declaration includes the counties of Carroll, Henry, Oldham, and Trimble in Kentucky, as well as Clark and Jefferson counties in Indiana. Through this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, agricultural cooperatives, nurseries, and private nonprofits that have experienced financial setbacks due to the disaster. However, agricultural producers, farmers, or ranchers are generally not eligible unless they operate small aquaculture enterprises.
These EIDLs can address working capital needs resulting from the disaster even if no physical damage occurred. They can be used for fixed debts, payroll obligations, accounts payable, and other expenses that could have been covered had the disaster not taken place.
Eligible applicants may receive up to $2 million with interest rates starting at 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years. Importantly, interest does not accrue nor are payments required until one year after the first loan disbursement date. The SBA determines loan amounts based on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster. For additional information on SBA disaster assistance programs or application processes, individuals can contact SBA’s Customer Service Center via phone at (800) 659-2955 or email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is set for March 26, 2025.