In response to a recent Presidential disaster declaration, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Kentucky businesses, nonprofits, and residents impacted by severe weather events earlier this month. The announcement follows the issuance of a disaster declaration on February 24, 2025.
The affected areas include the primary counties of Breathitt, Clay, Floyd, Harlan, Knott, Lee, Letcher, Martin, Owsley, Perry and Pike. These regions are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs). Adjacent counties in Kentucky and neighboring states are eligible only for EIDLs.
Businesses can apply for physical disaster loans up to $2 million to repair or replace damaged assets. Homeowners may borrow up to $500,000 for repairs to their primary residence and up to $100,000 for personal property replacement.
"Applicants may also be eligible for a loan increase of up to 20% of their physical damages," according to the SBA's announcement. This increase is intended for mitigation purposes such as structural improvements against future damage.
The EIDL program is available even if there was no physical damage but financial losses occurred due to the disaster. Interest rates vary from 4% for small businesses down to 2.563% for homeowners and renters with terms extending up to 30 years.
Starting February 27th, SBA customer service representatives will assist applicants at a Business Recovery Center in Perry County. "Walk-ins are accepted," though appointments can be scheduled online.
Survivors are advised not to delay applying due to pending insurance settlements; SBA offers loans covering total loss with insurance proceeds applied later against these loans. The deadline for physical property damage applications is April 25th while economic injury applications have until November 24th.
To apply online or get more information on assistance options visit SBA.gov/disaster or contact their Customer Service Center directly.