The U.S. Small Business Administration (SBA) has issued a reminder to private nonprofit organizations in Kentucky regarding the approaching deadline of April 23, 2025, for applying for federal disaster loans. These loans are intended to mitigate economic losses caused by severe weather events that occurred from May 21-27, 2024.
The disaster declaration encompasses several counties in Kentucky, including Adair, Allen, Ballard, and others. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to PNPs providing non-critical governmental services affected financially by these disasters. Eligible organizations may include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
These EIDLs are designed to cover working capital needs due to the disaster and can be utilized even if no physical damage was sustained by the organization. The loans can assist with fixed debts, payroll expenses, accounts payable, and other financial obligations unmet due to the event.
Chris Stallings of the SBA stated: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery." He emphasized that these loans not only aid business owners but also support local economies during recovery phases.
Eligible applicants can receive up to $2 million with interest rates starting at 3.25% over terms extending up to 30 years. Notably, interest does not accrue until a year after the first loan disbursement. Loan amounts and terms depend on each applicant's financial status.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available for those who require them by dialing 7-1-1.
The deadline for submitting economic injury applications is April 23, 2025.
###