The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to small businesses and private nonprofit organizations in Kentucky affected by flooding that occurred on February 15-16, 2025. The assistance also extends to Clay and Macon counties in Tennessee.
Eligible applicants include small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the flooding event. However, agricultural producers, farmers, or ranchers—except for aquaculture enterprises—are not eligible for these disaster loans.
These Economic Injury Disaster Loans (EIDLs) can be used for working capital needs caused by the disaster. The funds may cover fixed debts, payroll, accounts payable, and other bills that could not be paid due to the flooding. Businesses and nonprofits can apply even if they did not experience physical damage.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The maximum loan amount is $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can extend up to 30 years. Interest does not accrue and payments are not required until 12 months after the first loan disbursement. The SBA determines individual loan amounts and terms based on each applicant’s financial condition.
Applicants can find more information or apply online at sba.gov/disaster. Additional support is available through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1 for those who are deaf, hard of hearing, or have a speech disability.
The deadline to submit economic injury applications is March 16, 2026.
The SBA serves as a primary resource for entrepreneurs seeking support during disasters through its national network of field offices and partnerships with public and private organizations.