The Small Business Administration (SBA) has announced that low-interest disaster loans will be available to businesses and residents of Kentucky after announcing a presidential disaster declaration following the severe storms, floods, landslides and mudslides that began on July 26.
Small Businesses Hit by Deadly Kentucky Floods Could Get $2M in Emergency Loans
The torrential rains in eastern Kentucky have so far killed at least 37 people, including four children, according to Reuters reports. Governor Andy Beshear warned that more dangerous weather is approaching the region.
Kentucky Disaster Statement Coverage
The Presidential Disaster Declaration covers Breathitt, Clay, Knott, Letcher and Perry counties in Kentucky, which are eligible for both physical and economic personal injury loans from the SBA.
Small businesses and most private non-profit organizations in Bell, Floyd, Harlan, Jackson, Knox, Laurel, Lee, Leslie, Magoffin, Owsley, Pike and Wolfe in Kentucky and Wise in Virginia are also eligible to apply for SBA Economic Injury only ask for Emergency Loans (EIDLs).
Businesses and private nonprofits of all sizes may be able to borrow up to $2 million to repair or replace disaster-damaged or destroyed property, machinery and equipment, inventory, and other business assets. Small businesses such as agricultural cooperatives and aquaculture companies will be offered EIDLs to meet the working capital needs caused by the disaster. The special financial aid is available regardless of whether a company has suffered material damage.
In addition, disaster loans of up to $200,000 are available to homeowners to help them repair or replace disaster-damaged or destroyed properties.
Helping Communities ‘Recover and Rebuild’
SBA Administrator Isabella Casillas Guzman said, “The SBA’s mission-driven team stands ready to assist small businesses and Kentucky residents affected by this disaster in any way we can under President Biden’s disaster declaration for certain affected areas. We are committed to providing federal disaster loans quickly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
A statement on the SBA website explained the eligibility: “Applicants may be eligible for an increase in the amount borrowed up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigating improvements include a safe space or storm shelter, sump, elevation, retaining walls and landscaping to protect property and occupants from future damage caused by a similar disaster.
“Applicants who have an existing SBA emergency loan can apply under this statement. Businesses and residents with previous SBA disaster loans and current applicants have up to two years from the date of their previous loan approval to request a loan increase for mitigation projects.
The SBA’s Associate Administrator, Francisco Sanchez Jr., added, “The ability to incorporate measures to help prevent future damage is a key benefit of SBA’s disaster loan program. I encourage everyone to consult their contractors and emergency management specialists for ideas and to apply for an increase in the SBA emergency loan for funding.”
How to apply for EIDL assistance?
Applicants can apply online using the Electronic Loan Application on SBA’s secure website, with applications to be submitted under SBA Statement #17546. Loan amounts and terms are set by the SBA and are based on each applicant’s individual financial condition.
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This post Small Businesses Hit by Deadly Kentucky Floods Could Get $2M in Emergency Loans was original published at “https://smallbiztrends.com/2022/08/2-million-disaster-loans-small-businesses-kentucky.html”