The U.S. Small Business Administration (SBA) announced that federal Economic Injury Disaster Loans (EIDLs) are now available for small businesses, small agricultural cooperatives, businesses engaged in aquaculture, and most private nonprofit organizations in Kentucky. These loans are being offered to help businesses that have suffered economic losses due to the drought that began on September 17, 2024.
The declaration covers the primary counties of Boyd, Carter, Greenup, and Lawrence, as well as the adjacent counties of Elliott, Johnson, Lewis, Martin, Morgan, and Rowan in Kentucky. Neighboring counties in other states, including Lawrence and Scioto in Ohio and Wayne in West Virginia, are also eligible.
Eligibility and Loan Details
The SBA’s Economic Injury Disaster Loan program is available to both farm-related and nonfarm-related businesses that have experienced financial losses as a direct result of the drought. While the SBA cannot provide disaster loans directly to agricultural producers, farmers, and ranchers (with the exception of aquaculture enterprises), nurseries affected by drought conditions are eligible to apply for these loans.
Loan amounts can be up to $2 million, with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations. Loan terms can extend up to 30 years, and interest does not begin to accrue, nor are payments due, until 12 months from the date of the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
The loans are intended to provide working capital and may be used to cover fixed debts, payroll, accounts payable, and other bills that could have been paid if the disaster had not occurred. However, these loans are not designed to replace lost sales or profits.
Application Process and Deadline
Eligible businesses and nonprofits can apply for assistance online by visiting SBA.gov/disaster. Additional information is also available by calling the SBA’s Customer Service Center at (800) 659-2955 or by emailing [email protected]. Individuals who are deaf, hard of hearing, or have a speech disability can use telecommunications relay services by dialing 7-1-1.
The deadline to submit completed loan applications is May 23, 2025.
This article, “SBA Offers Working Capital Loans to Small Businesses in Kentucky Affected by Drought” was first published on Small Business Trends