The U.S. Small Business Administration (SBA) has announced that certain private nonprofit organizations in Kentucky affected by severe storms, straight-line winds, tornadoes, and flooding on May 16-17, 2025 are now eligible for federal disaster loans. This follows a Presidential disaster declaration for public assistance issued on July 22, 2025.
The affected counties include Adair, Allen, Barren, Breathitt, Butler, Caldwell, Carlisle, Casey, Christian, Clay, Clinton, Crittenden, Cumberland, Estill, Jackson, Knott, Knox, LaRue, Laurel, Lee, Livingston, Logan, Lyon, Marshall, McCreary, Menifee, Metcalfe, Owsley, Powell, Pulaski, Rockcastle, Russell, Spencer,Todd Trigg Union Warren Wayne and Whitley.
Private nonprofits providing non-critical services of a governmental nature can apply for both Physical Disaster Loans and Economic Injury Disaster Loans (EIDLs). Examples of eligible organizations include food kitchens and homeless shelters as well as museums and community centers. These groups may borrow up to $2 million to repair or replace damaged real estate and equipment. Loan increases of up to 20% of verified physical damages may be available for mitigation efforts.
Economic Injury Disaster Loans are also available for working capital needs resulting from the disaster even if there was no physical damage. The loans can be used to pay fixed debts such as payroll or accounts payable that could not be met due to the disaster.
“SBA loans help eligible PNPs cover operating expenses after a disaster which is crucial for their recovery," said Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help PNPs get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Interest rates start at 3.625% with terms up to 30 years. Interest does not accrue nor are payments due until one year after the first loan disbursement. Loan amounts and terms are set based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or by email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1.
The deadline to apply for physical property damage is September 22 2025 while applications for economic injury must be filed by April 22 2026.
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