The U.S. Small Business Administration (SBA) has announced that certain private nonprofit organizations in Kentucky are now eligible for low-interest federal disaster loans following severe storms, tornadoes, flooding, landslides, and mudslides that occurred between April 2 and May 16, 2025. This follows a Presidential disaster declaration for public assistance issued on July 22, 2025.
The affected areas include a wide range of counties across Kentucky such as Allen, Anderson, Ballard, Barren, Bracken, Breathitt, Breckinridge, Bullitt, Butler, Caldwell, Calloway, Campbell, Carlisle, Carroll Carter, Casey, Christian, Clark, Clay, Crittenden, Daviess, Edmonson, Elliott, Estill, Floyd, Franklin, Fulton, Gallatin, Garrard and many others.
Private nonprofits providing non-critical services of a governmental nature—such as food kitchens, homeless shelters, museums, libraries, community centers and educational institutions—are eligible to apply for both Physical Disaster Loans and Economic Injury Disaster Loans (EIDLs). These loans can be used to repair or replace damaged real estate and business assets or to cover working capital needs even if no physical damage was sustained.
Eligible organizations may borrow up to $2 million for recovery purposes. In addition to the basic loan amount available for repairing or replacing property and equipment damaged by the disaster event in Kentucky’s counties listed above [https://www.sba.gov/disaster], applicants may qualify for an additional loan increase of up to 20% of verified physical damages specifically for mitigation efforts.
Economic Injury Disaster Loans are designed to help with operating expenses like fixed debts and payroll when revenues have been disrupted by the disaster. According to Chris Stallings of the SBA Office of Disaster Recovery and Resilience: "SBA loans help eligible PNPs cover operating expenses after a disaster which is crucial for their recovery. 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 repayment terms up to 30 years. There is a one-year deferment before interest accrues or payments are due. Loan amounts and terms are determined based on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster. Assistance is also available via phone at (800) 659-2955 or by email at disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1.
The deadline for submitting applications related to physical property damage is September 22, 2025; applications for economic injury must be filed by April 22, 2026.