ATLANTA – In response to an amended Presidential disaster declaration, the U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans to private nonprofit (PNP) organizations in twenty-nine additional Kentucky counties affected by the severe storms, straight line winds, flooding, landslides and mudslides beginning Feb. 14, 2025.
The amended declaration covers the newly designated counties of Adair, Allen, Bell, Boyd, Breathitt, Caldwell, Carlisle, Clay, Crittenden, Cumberland, Elliott, Floyd, Hancock, Harlan, Hickman, Johnson, Knott, Knox, Letcher, Livingston, Martin, McLean, Monroe, Morgan, Muhlenberg, Ohio, Perry, Pike and Union.
Under this declaration, PNPs providing non-critical services of a governmental nature who suffered financial losses directly related to the disaster are eligible to apply for both Physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
PNPs may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may also be eligible for a loan increase of up to 20% of their physical damages, as verified by the SBA, for mitigation purposes.
EIDLs are for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
“SBA loans help eligible small businesses and private nonprofits 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 business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
The interest rate can be as low as 3.625%, with terms up to 30 years. Interest does not begin to accrue, and monthly payments are not due, until 12 months from the date of the initial disbursement.
To apply online visit sba.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to submit applications for physical property damage is May 5, 2025. The deadline to submit economic injury applications is Dec. 4, 2025.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.