The U.S. Small Business Administration (SBA) has extended the deadline for applications for low-interest physical disaster loans in Kentucky. Businesses and residents affected by the disaster now have until May 25, 2025, to apply for these loans.
The loan program covers several counties, including Breathitt, Clay, Estill, Floyd, Harlan, Johnson, Knott, Lee, Letcher, Leslie, Martin, Owsley, Perry, Pike, and Woodford. These areas are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Surrounding counties, including some in nearby states, can apply solely for EIDLs.
Businesses and nonprofits can access up to $2 million to repair or replace damaged assets. Homeowners and renters can apply for loans up to $100,000 for personal property, with homeowners qualifying for up to $500,000 to repair or replace their primary residences.
One of the program’s benefits is funding for upgrades that can mitigate future damage. "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, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. Stallings encourages applicants to work with contractors to enhance their storm readiness.
The EIDL program also supports financial losses in small businesses and nonprofits, even if no physical damage occurred. It covers working capital needs like fixed debts, payroll, and bills, with interest rates as low as 4% for small businesses, 3.625% for PNPs, and 2.563% for homeowners and renters.
Survivors are advised to apply for loans without waiting for insurance settlements to avoid delays. These loans are intended to help recover from disaster, with survivors encouraged to also apply for FEMA grants as part of their recovery plan.
For more information, visit sba.gov/disaster or contact the SBA’s Customer Service Center.
The application deadline for physical damage is May 25, 2025, and for economic injury is November 24, 2025.