The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to aid small businesses and private nonprofit organizations in Kentucky. These entities have experienced economic setbacks due to excessive rain, flash flooding, and high winds that took place from July 30 to August 2, 2024.
The affected areas include the primary county of Breckinridge and the adjacent counties of Grayson, Hancock, Hardin, Meade, and Ohio in Kentucky, as well as Perry in Indiana.
Small businesses, small agricultural cooperatives, nurseries, and private nonprofits suffering from financial losses as a direct result of this weather event may access the SBA’s Economic Injury Disaster Loan (EIDL) program. These loans cover working capital needs and are available even to entities that did not suffer physical damage. The SBA does not extend disaster loans to agricultural producers, farmers, or ranchers, except those involved in aquaculture.
The loan funds may be used for essential expenses, including payroll, fixed debts, accounts payable, and other bills not settled due to the disaster. Loans can reach up to $2 million, with interest rates of 4% for small businesses and 3.250% for private nonprofits. The terms may extend up to 30 years, with interest accrual and payment commencement delayed until 12 months post-disbursement, dependent on applicants' financial situations.
Chris Stallings, associate administrator of the SBA's Office of Disaster Recovery and Resilience, emphasized the importance of this assistance, saying, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Applications can be submitted online at sba.gov/disaster or through the SBA's Customer Service Center. The application deadline for economic injury loans is set for December 1, 2025.
The U.S. Small Business Administration is dedicated to supporting American entrepreneurs, providing essential resources and services nationwide to facilitate business growth and recovery.