In response to an amended Presidential disaster declaration, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for businesses, nonprofits, and residents in additional Kentucky counties. These areas have been affected by severe storms, straight-line winds, flooding, landslides, and mudslides from February 14 to March 7.
The newly designated counties eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs) are Leslie and Woodford. Additionally, SBA EIDLs are now available to small businesses and private nonprofit organizations in the adjacent counties of Anderson, Fayette, Franklin, Jessamine, Mercer, and Scott.
Eligible businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace disaster-damaged real estate, machinery and equipment, inventory, and other business assets. Homeowners may apply for home loans up to $500,000 for primary residence repairs or replacement.
Applicants may qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Eligible improvements include strengthening structures against high wind damage or installing storm shelters.
“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 Office of Disaster Recovery and Resilience at the SBA. He encouraged using mitigation loans to enhance storm readiness.
The EIDL program assists eligible small businesses that suffered financial losses due to this disaster. It supports working capital needs even if there was no physical damage.
Interest rates start as low as 4% for small businesses with terms extending up to 30 years. Interest accrual begins after one year from the first disbursement date. Loan amounts depend on each applicant's financial condition.
Survivors should not delay applying while waiting on insurance settlements. The SBA can provide a loan covering total loss if borrowers agree to use insurance proceeds towards repayment.
Following FEMA's updated Sequence of Delivery changes, survivors should apply simultaneously for FEMA grants and SBA loans. While FEMA grants address necessary expenses not covered by other sources, SBA loans focus on long-term recovery efforts.
For online applications visit SBA.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available through dialing 7-1-1.
The deadline for returning physical property damage applications is April 25, 2025; economic injury applications are due by November 24, 2025.