In response to the severe storms that hit West Virginia on February 15, the U.S. Small Business Administration (SBA) has announced low-interest federal disaster loans for affected businesses, nonprofits, and residents. The announcement follows a Presidential disaster declaration issued on February 26, 2025.
The primary counties covered by this declaration include McDowell, Mercer, Mingo, and Wyoming. These areas are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs). Additionally, small businesses and private nonprofit organizations in adjacent counties such as Boone, Lincoln, Logan, Monroe, Raleigh, Summers, and Wayne in West Virginia; Martin and Pike in Kentucky; and Bland, Buchanan, Giles, and Tazewell in Virginia can apply for EIDLs.
Eligible businesses may borrow up to $2 million to repair or replace damaged or destroyed real estate and other business assets. Homeowners can apply for loans of up to $500,000 to repair their primary residence or up to $100,000 for personal property.
Applicants may qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings from the SBA.
The EIDL program is available for small businesses suffering financial losses due to the disaster but does not cover agricultural producers unless they are aquaculture enterprises. These loans can help cover fixed debts and payroll among other expenses.
Interest rates start at 4% for small businesses, 3.625% for nonprofits, and 2.563% for homeowners and renters with terms up to 30 years. Payments are deferred until one year after the first disbursement.
From March 3 onwards, SBA representatives will be available at the Business Recovery Center in Mercer County to assist applicants with the process. Survivors are advised not to wait for insurance settlements before applying as SBA offers loans based on total loss estimates pending insurance reimbursements.
The filing deadline for physical property damage applications is April 28, 2025. For economic injury applications, it is November 26, 2025.
For further information or assistance with applications, visit SBA.gov/disaster or contact their Customer Service Center at (800) 659-2955.