Sign in Subscribe
Floods

Low-Interest Disaster Loans Available for Small Businesses Affected by Kentucky Flooding

Strategic Insights

— 1 min read

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans to small businesses and private non-profit organizations in Kentucky and Tennessee that sustained economic losses due to flooding on February 15-16, 2025. The disaster declaration covers counties in Kentucky and Tennessee, and the SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible businesses, agricultural cooperatives, and non-profit organizations with financial losses directly related to the disaster.

Key Takeaways:

  • The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private non-profit organizations with financial losses directly related to the Kentucky flooding.
  • The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private non-profit organizations.
  • The loan terms are up to 30 years, with interest not accruing and payments not due until 12 months from the date of the first loan disbursement.
  • The SBA sets loan amounts and terms based on each applicant's financial condition.
  • The loan may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
  • Small businesses and private non-profit organizations in the declared counties of Allen, Barren, Cumberland, Metcalfe, and Monroe in Kentucky, as well as Clay and Macon counties in Tennessee, are eligible for the loan program.
  • Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated that the SBA provides critical financial assistance to help communities recover from disasters.

Statistics:

  • The maximum loan amount is $2 million.
  • Interest rates are as low as 4% for small businesses and 3.625% for private non-profit organizations.
  • The loan term is up to 30 years.
  • Interest does not accrue on the loan.
  • Payments are not due until 12 months from the date of the first loan disbursement.
  • The loan is available to small businesses and private non-profit organizations with financial losses directly related to the Kentucky flooding.

Sources:

  • "Low interest disaster loans now available" by Disaster Field Operations Center East, Published on July 29, 2025 by [no online source provided]

Read more