Getting your Trinity Audio player ready...

The U.S. Small Business Administration has announced that three disaster declarations by the U.S Secretary of Agriculture means federal Economic Injury Disaster Loans (EIDLs) are available in two dozen Kentucky counties due to heavy rain and flash flooding earlier this summer.

The loans can only be used by small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses, due to the disasters that occurred in June and July 2023.

One declaration includes McLean and Ohio counties, and the contiguous Kentucky counties of Breckinridge, Butler, Daviess, Grayson, Hancock, Henderson, Hopkins, Muhlenberg, and Webster, from flooding between June 29 and July 3 under declaration # 18150.

A second one includes McCracken County and the contiguous counties of Ballard, Carlisle, Graves, Livingston, and Marshall, due to flooding on July 19 and 20, under declaration # 18151.

The third includes Madison County and the contiguous counties of Clark, Estill, Fayette, Garrard, Jackson, Jessamine, and Rockcastle in Kentucky, under disaster declaration # 18149.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” said Ed Fears, acting director of SBA’s Field Operations Center East, located in Atlanta.

Loans can be up to $2 million with interest rates of 4% for small businesses and 2.375% for private nonprofit organizations, 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.

Eligibility is based on the size of the applicant, type of activity and its financial resources.  The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.  They are not intended to replace lost sales or profits.

You may apply online using the SBA’s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and include the SBA declaration number listed above.

Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955, emailing DisasterCustomerService@sba.gov, or downloading it from the SBA’s website at sba.gov/disaster.

Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.  The submission deadline is May 7, 2024, for all three disasters.