The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Kentucky of the approaching June 30 deadline to apply for low-interest federal disaster loans. These loans aim to offset economic losses caused by drought on June 1, 2024.
The disaster declaration affects multiple counties in Kentucky, including Anderson, Bath, Boone, Bourbon, Boyle, Bracken, Campbell, Carroll, Casey, Clark, Estill, Fayette, Fleming, Franklin, Gallatin, Garrard, Grant, Harrison, Henry, Jefferson, Jessamine, Kenton, Lee, Lewis, Lincoln, Madison, Marion, Mason Menifee Mercer Montgomery Nelson Nicholas Oldham Owen Pendleton Powell Robertson Rowan Scott Shelby Spencer Trimble Washington Wolfe and Woodford. It also includes certain counties in Indiana and Ohio.
Under this declaration from the U.S. Secretary of Agriculture's office through SBA’s Economic Injury Disaster Loan (EIDL) program offers financial relief to small businesses small agricultural cooperatives nurseries and private nonprofits with financial losses directly related to the drought. However agricultural producers farmers or ranchers are not eligible except for small aquaculture enterprises.
Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated "Through a declaration by the U.S. Secretary of Agriculture SBA provides critical financial assistance to help communities recover." He added "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
EIDLs can be used for working capital needs caused by the disaster even if there was no physical damage incurred by the business or organization. The loans may cover fixed debts payroll accounts payable and other bills that could not be paid due to the disaster.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.250% for PNPs with terms extending up to 30 years. Interest does not accrue nor are payments required until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
To apply online visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For those who are deaf hard of hearing or have a speech disability dial 7-1-1 for telecommunications relay services.
Completed loan applications must be submitted no later than June 30 2025.
The U.S. Small Business Administration helps power American business ownership dreams providing resources support through an extensive network of field offices partnerships with public private organizations across the country.