The U.S. Small Business Administration (SBA) is urging businesses, private nonprofits, and residents in Kentucky affected by severe weather events starting April 2, 2025, to apply for federal disaster loans before the approaching deadline of July 25.
Applicants do not need to wait for insurance settlements to apply for an SBA disaster loan. The SBA can provide a low-interest loan for the total loss up to its limits if the borrower agrees to use insurance proceeds to reduce or repay the loan.
The disaster declaration includes several primary counties in Kentucky eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs). These counties are Anderson, Breckinridge, Bullitt, Butler, Calloway, Carroll, Christian, Clark, Daviess, Franklin, Garrard, Grayson, Hancock, Hardin, Hart, Henderson, Henry, Hopkins, Jefferson, Jessamine, LaRue, Lincoln, McCracken, McLean, Meade, Mercer, Muhlenberg, Nelson Ohio Oldham Owen Pendleton Powell Trimble Warren Webster Woodford. Additionally eligible are adjacent counties in Kentucky and select counties in Illinois Indiana Ohio and Tennessee.
Businesses and nonprofits impacted by the declared disaster should consider applying for business physical disaster loans and economic injury loans. Eligible applicants may borrow up to $2 million for repairing or replacing damaged assets or working capital.
Homeowners and renters affected by the disaster can apply for home and personal property loans. Homeowners may borrow up to $500000 while renters can access up to $100000 for personal property repairs or replacements.
The EIDL program is available even if no physical damage occurred provided there are financial losses directly related to the disaster. However agricultural producers farmers or ranchers except aquaculture enterprises cannot receive these loans from the SBA.
Interest rates are set at 4% for small businesses 3.625% for PNPs and 2.75% for homeowners and renters with terms extending up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or by contacting 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 July 25 2025 while economic injury applications must be returned by January 26 2026.