Low-Interest Disaster Loans Now Available for Recovery
The U.S. Small Business Administration (SBA) is stepping in to provide much-needed financial relief to Kentucky businesses, nonprofits, and residents affected by the severe storms, straight-line winds, flooding, landslides, and mudslides that began on February 14, 2025. In response to the Presidential disaster declaration issued on February 24, SBA has made low-interest disaster loans available to those impacted.
Important Documents
Who is Eligible for SBA Disaster Loans?
SBA disaster loans are available to individuals, businesses, and nonprofit organizations in 11 primary Kentucky counties, with additional assistance for businesses in neighboring areas.
Primary Counties Eligible for Physical and Economic Injury Loans
- Breathitt, Clay, Floyd, Harlan, Knott, Lee, Letcher, Martin, Owsley, Perry, and Pike
Neighboring Counties Eligible for Economic Injury Loans Only
- Kentucky: Bell, Estill, Jackson, Johnson, Knox, Laurel, Lawrence, Leslie, Magoffin, Powell, Wolfe
- Virginia: Buchanan, Dickenson, Lee, Wise
- West Virginia: Mingo, Wayne
Types of SBA Disaster Loans Available
The SBA offers several loan options to support recovery efforts:
- Home Disaster Loans – Up to $500,000 for homeowners to repair or replace disaster-damaged real estate and up to $100,000 for damaged personal property (including vehicles).
- Business Physical Disaster Loans – Up to $2 million for businesses and nonprofits to repair or replace damaged real estate, machinery, inventory, and other assets.
- Economic Injury Disaster Loans (EIDLs) – Up to $2 million in working capital assistance for small businesses and nonprofits struggling with financial losses due to the disaster.
Mitigation Funding: Borrowers may also be eligible for an additional 20% increase in loan amounts for mitigation improvements to strengthen properties against future disasters.
SBA Disaster Loan Interest Rates & Terms
SBA disaster loans come with fixed low-interest rates and flexible repayment terms:
| Loan Type | Interest Rate (No Credit Available Elsewhere) | Interest Rate (With Credit Available Elsewhere) |
|---|---|---|
| Home Loans | 2.563% | 5.125% |
| Business Loans | 4.000% | 8.000% |
| Nonprofit Organizations | 3.625% | 3.625% |
| Economic Injury Loans (EIDL) – Businesses | 4.000% | N/A |
| Economic Injury Loans (EIDL) – Nonprofits | 3.625% | N/A |
Loan repayment terms can extend up to 30 years, with no payments due for the first 12 months after disbursement.
How to Apply for SBA Disaster Assistance
Disaster survivors are encouraged to apply as soon as possible and do not need to wait for insurance claims to be settled.
Application Deadlines
- Physical Damage Loans: April 25, 2025
- Economic Injury Loans (EIDL): November 24, 2025
Ways to Apply
Online: Apply at SBA.gov/disaster
By Phone: Call SBA’s Customer Service Center at (800) 659-2955
By Email: disastercustomerservice@sba.gov
In-Person: Visit the Business Recovery Center (BRC) in Perry County
Business Recovery Center (BRC) Location & Hours
Hazard Community and Technical College – Jolly Classroom Center
1 Community College Drive, Hazard, KY 41701
Monday – Friday: 8 AM – 6 PM
Saturday: 9 AM – 3 PM
Closed Sundays
Walk-ins are welcome, or schedule an appointment in advance at appointment.sba.gov
Final Thoughts: Don’t Wait to Apply!
If you or your business has been impacted by the February 2025 storms, the SBA disaster loan program is a critical resource for financial recovery. Whether you need funding to repair your home, business, or cover lost revenue, these low-interest loans can help you rebuild and move forward.
For the most up-to-date information, visit SBA’s Disaster Assistance Page.
Need help? Contact SBA today and take the first step toward recovery.
KENTUCKY SMALL BUSINESS DISASTER RECOVERY GUIDES
Navigating A Business Crisis
Practical strategies for Cash Management, Pricing & Cost Containment, Supply Chain Management, and Marketing to help small businesses effectively navigate through a Business Crisis.
Managing In Times Of Financial Difficulty
This checklist is designed to give guidance to businesses on how they can manage through difficult times. Small businesses need to take action when the going gets tough. While there is no single cure-all, there are many steps a business owner can take to manage through the difficult times and position the business for future growth.
Reopening Your Business After A Disaster
Following a disaster, the immediate reaction of many business owners is to reopen their business as soon as possible. However, a post disaster environment is anything but ‘business as usual’ for you, your employees, key suppliers and customers.