The U.S. Small Business Administration (SBA) has approved federal disaster loans exceeding $10 million to aid Kentucky's recovery from severe weather events. These events, which included storms, flooding, landslides, and mudslides, occurred between February 14 and March 17, 2025. As of May 2, 2025, over $2.4 million has been allocated to businesses and over $7.8 million to residents affected by the disaster.
Chris Stallings, associate administrator for the SBA’s Office of Disaster Recovery and Resilience, stated, “Surpassing $10 million in disaster loans reflects more than just numbers — it represents small businesses reopening, families returning home and communities rebuilding stronger. These loans provide vital support for recovery, and we encourage anyone still in need to apply before the deadline.”
The SBA has extended the deadline for physical damage loan applications. The Economic Injury Disaster Loan (EIDL) program remains available to small businesses and private nonprofit organizations for working capital needs that arose due to the disaster. EIDLs can be used to meet expenses like fixed debts and payroll, irrespective of physical property damage.
Eligible businesses and individuals can receive loans up to $2 million, with interest rates as low as 4% for small businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters. Loan terms can extend up to 30 years, and interest does not accrue in the first year. The SBA determines specific loan amounts and terms based on financial evaluation of each applicant.
Applications can be submitted online at sba.gov/disaster. The SBA’s Customer Service Center is available for assistance via phone at (800) 659-2955 or through email at disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1.
The deadline for applications for physical property damage is May 25, 2025, while the deadline for economic injury applications is November 24, 2025.
The U.S. Small Business Administration, a vital federal resource, supports business ownership and recovery from declared disasters. For more details about the SBA, visit their website.