In response to an amended Presidential disaster declaration, the U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to businesses, nonprofits, and residents in additional Kentucky counties affected by severe weather events on February 14. The newly designated counties of Estill, Johnson, and Simpson are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Small businesses and private nonprofit organizations in adjacent counties such as Allen, Clark, Elliott, Logan, Madison, Morgan, and Warren in Kentucky and Robertson and Sumner in Tennessee can also access EIDLs. Businesses may apply for up to $2 million to repair or replace damaged real estate and other business assets. Homeowners can borrow up to $500,000 for primary residence repairs or replacements.
Applicants may be eligible for a loan increase of up to 20% of their physical damages for mitigation purposes. Chris Stallings from the SBA highlighted the program's advantage: "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage."
The EIDL program is open to small businesses that suffered financial losses due to the disaster but excludes agricultural producers unless they are aquaculture enterprises. These loans address working capital needs like payroll and fixed debts even if no physical damage occurred.
Interest rates vary: 4% for small businesses, 3.625% for PNPs, and 2.563% for homeowners with terms extending up to 30 years. Loan amounts depend on each applicant’s financial condition.
Survivors should not delay applying while awaiting insurance settlements; SBA offers loans based on total loss within its limits if borrowers agree insurance proceeds will repay these loans.
Following changes in FEMA’s Sequence of Delivery policy, survivors are encouraged to apply simultaneously for FEMA grants and SBA assistance.
Applications can be submitted online at SBA.gov/disaster or by contacting SBA's Customer Service Center at (800) 659-2955. Deadlines are April 25, 2025, for physical property damage applications and November 24, 2025, for economic injury applications.