In response to a Presidential disaster declaration on April 24, 2025, the U.S. Small Business Administration (SBA) announced federal disaster loan assistance for Kentucky businesses, nonprofits, and residents affected by severe weather events starting April 2. This includes storms, straight-line winds, tornadoes, flooding, landslides, and mudslides.
The disaster declaration covers main counties such as Anderson, Butler, and Carroll, among others, which qualify for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Adjacent counties eligible only for SBA EIDLs include Ballard, Caldwell, and Fayette in Kentucky, and several counties in Illinois, Indiana, and Tennessee.
Businesses and nonprofits can apply for loans up to $2 million to repair or replace damaged property or assets. Homeowners and renters can borrow up to $100,000 for personal property repairs and homeowners up to $500,000 for primary residence repairs. Additional loan increases for mitigation purposes are available, allowing upgrades like wind-resistant structures and storm shelters.
"One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. He urged property owners to enhance storm preparedness using SBA loans.
SBA's EIDL program is applicable for small businesses, agricultural cooperatives, nurseries, and private nonprofit organizations with financial losses due to the disaster. Although agricultural producers and farmers are excluded, aquaculture enterprises can access aid.
These loans address working capital needs unaffected by physical damage, covering fixed debts and payroll. Interest rates are set as low as 4% for businesses, 3.625% for nonprofits, and 2.750% for homeowners and renters, with payment deferrals for 12 months post-loan disbursement.
From April 28, SBA representatives will be available at the Business Recovery Center in Franklin County to assist with applications for disaster loans. They emphasize not delaying loan applications while awaiting insurance claims, highlighting that SBA can lend for the total loss, adjusted post-insurance settlements.
The process now allows survivors to apply for both FEMA grants and SBA loans concurrently. The filing deadline for physical property damage applications is June 23, 2025, while the economic injury application deadline is January 26, 2026.
For online applications, visit sba.gov/disaster, or contact SBA’s Customer Service at (800) 659-2955. Individuals with hearing or speech disabilities can dial 7-1-1 for assistance through telecommunications relay services.