The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofits, and residents in Indiana affected by recent flooding. The flooding occurred from June 28 to July 2, 2025, prompting a disaster declaration after a request from Governor Mike Braun on July 11.
The declaration covers Daviess, Dubois, Greene, Knox, Martin, and Pike counties. These areas are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Small businesses and private nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate and other assets. Homeowners and renters may borrow up to $100,000 for personal property replacement or repair. Homeowners can also apply for up to $500,000 to repair their primary residence.
Applicants might qualify for a loan increase of up to 20% of their physical damage for mitigation purposes. Eligible improvements include strengthening structures against high winds and 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," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA.
The EIDL program is available for small businesses with financial losses due to the disaster but not agricultural producers except small aquaculture enterprises. EIDLs cover working capital needs even if no physical damage occurred.
Interest rates are as low as 4% for small businesses, 3.625% for PNPs, and 2.813% for homeowners and renters with terms up to 30 years. Payments begin one year after the first loan disbursement.
Starting Wednesday, July 23, SBA representatives will be available at the Disaster Loan Outreach Center in Daviess County to assist applicants. The center will operate until July 31.
Disaster survivors should not wait for insurance settlements before applying for a loan as SBA can provide loans covering total loss within limits if insurance proceeds are used to repay the loan.
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. The deadline for physical property damage applications is September 16, 2025; economic injury applications are due by April 20, 2026.