In response to a Presidential disaster declaration for public assistance, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for certain private nonprofit organizations in Kentucky. These loans are intended for those affected by severe storms, straight-line winds, flooding, landslides, and mudslides that began on February 14.
The counties covered under this disaster declaration include Ballard, Barren, Butler, Green, Hart, Marshall, Metcalfe, Rockcastle, Spencer, and Wayne.
Private nonprofits providing non-critical services of a governmental nature can apply for both business physical disaster loans and Economic Injury Disaster Loans (EIDLs). Eligible organizations encompass food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
Eligible PNPs may borrow up to $2 million to repair or replace damaged real estate and other assets. Additionally, applicants may qualify for a loan increase of up to 20% of their physical damages for mitigation purposes.
EIDLs are available even if there is no physical damage and can be used to cover working capital needs caused by the disaster. This includes fixed debts and payroll among other expenses.
“SBA loans help eligible PNPs cover operating expenses after a disaster," said Chris Stallings from the SBA's Office of Disaster Recovery and Resilience. "These loans not only help PNPs get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Interest rates start at 3.625%, with terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center via phone or email. The deadline for applications related to physical property damage is May 5, 2025; economic injury applications must be returned by December 4, 2025.
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