The U.S. Small Business Administration (SBA) has announced the deadline for small businesses and private nonprofit organizations in Kentucky to apply for low-interest federal disaster loans is June 2, 2025. These loans are to compensate for economic losses due to the drought that began on September 24, 2024.
The disaster declaration encompasses multiple counties in Kentucky, including Anderson, Boyle, Carroll, Casey, Fayette, Floyd, Franklin, Gallatin, Garrard, Grant, Henry, Jefferson, Jessamine, Johnson, Lawrence, Lincoln, Marion, Martin, Mercer, Nelson, Oldham, Owen, Pike, Scott, Shelby, Spencer, Trimble, Washington, and Woodford, along with Mingo and Wayne in West Virginia.
The SBA’s Economic Injury Disaster Loan (EIDL) program is open to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly stemming from the drought. However, agricultural producers, farmers, or ranchers are not eligible unless they operate small aquaculture enterprises.
The EIDLs are intended to aid with working capital needs resulting from the drought, and they are offered even if the applicant did not suffer physical damage. These loans may be utilized for fixed debts, payroll, accounts payable, and other disaster-related bills. Loan amounts can be as high as $2 million, with interest rates set at 4% for small businesses and 3.25% for private nonprofits, and terms stretching up to 30 years. Notably, interest and payments on the loans are deferred for 12 months after the first disbursement, and the loan conditions depend on the financial status of the applicant.
Chris Stallings, the associate administrator of the Office of Disaster Recovery and Resilience at the SBA, emphasized, “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.”
Those interested in applying can visit sba.gov/disaster for online applications. Assistance is also available via SBA’s Customer Service Center at (800) 659-2955 or through email at disastercustomerservice@sba.gov. Services are accessible for people who are deaf, hard of hearing, or have speech disabilities by dialing 7-1-1 for telecommunications relay services.
The deadline to submit economic injury applications is firm: June 2, 2025.
The SBA is dedicated to facilitating business growth and operations, providing resources and support to both entrepreneurs and small business owners. For further information, the SBA encourages visits to their website, www.sba.gov.