The U.S. Small Business Administration (SBA) has issued a reminder to small businesses, private nonprofit organizations, homeowners, and renters in Kentucky regarding the approaching deadline of June 23 to apply for federal disaster loans. These low-interest loans are intended to help offset losses from physical damage caused by severe weather events that began on April 2.
The disaster declaration includes several primary counties in Kentucky, such as Anderson, Breckinridge, Bullitt, Butler, Calloway, Carroll, Christian, Clark, Daviess, Franklin, Garrard, Grayson, Hancock, Hardin, Hart, Henderson, Henry, Hopkins, Jefferson, Jessamine, LaRue, Lincoln, McCracken and others. In these areas affected parties can apply for both physical damage loans and Economic Injury Disaster Loans (EIDLs). Adjacent counties in Kentucky and neighboring states including Illinois and Indiana are eligible only for EIDLs.
Eligible businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate and other assets. Homeowners may borrow up to $500,000 for their primary residence repairs while renters can apply for up to $100,000 for personal property replacement.
Applicants might also qualify for a loan increase of up to 20% of their physical damage verified by the SBA for mitigation purposes. Improvements could include strengthening structures against high winds or installing 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 from the SBA.
Interest rates are set at 4% for small businesses and 3.62% for private nonprofits with homeowners and renters offered rates as low as 2.75%. Loan terms can extend up to 30 years with interest accrual starting after a year from disbursement.
Disaster survivors should not delay applying while waiting on insurance settlements as SBA provides loans based on total loss estimates pending insurance payouts.
Applications can be submitted online at sba.gov/disaster or through contact with SBA's Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1.
The deadline for submitting applications related to physical property damage is June 23 while economic injury applications must be filed by January 26 next year.