The U.S. Small Business Administration (SBA) has issued a reminder to eligible residents, small businesses, and private nonprofits in Kentucky regarding the approaching deadline for applying for federal disaster loans. The cutoff date to submit applications for low-interest loans aimed at offsetting physical damage caused by severe storms, straight-line winds, and tornadoes on May 16-17 is July 23.
The SBA's disaster declaration covers the primary counties of Caldwell, Laurel, Pulaski, Russell, Trigg, and Union. These areas are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs). Additionally, small businesses and private nonprofit organizations in adjacent counties such as Adair, Calloway, Casey among others in Kentucky; Gallatin and Hardin counties in Illinois; Posey County in Indiana; and Stewart County in Tennessee can apply solely for EIDLs.
Eligible businesses may borrow up to $2 million to repair or replace damaged real estate or other business assets. Homeowners can apply for up to $500,000 to address primary residence repairs or replacements. Renters have access to loans up to $100,000 for personal property needs.
A notable feature of the SBA’s program is the potential loan increase of up to 20% of verified physical damage costs aimed at mitigation improvements like 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's Office of Disaster Recovery and Resilience.
Interest rates vary: 4% for small businesses, 3.625% for PNPs, and 2.813% for homeowners and renters with terms extending up to 30 years. Loan amounts depend on individual financial conditions with interest accruing only after one year from disbursement.
Applicants are encouraged not to wait on insurance settlements before applying since SBA loans can cover total losses initially under certain agreements regarding insurance proceeds.
For more information or application assistance visit sba.gov/disaster or contact their Customer Service Center at (800) 659-2955.
The deadline for economic injury applications is February 23, 2026.