In a significant development for small businesses in Kentucky, the U.S. Small Business Administration (SBA) has announced the availability of federal Economic Injury Disaster Loans (EIDLs). These loans aim to support small businesses, agricultural cooperatives, aquaculture ventures, and nonprofit organizations that have experienced economic setbacks due to the drought that began on September 17, 2024.
The SBA’s declaration specifically includes key counties such as Boyd, Carter, Greenup, and Lawrence, along with adjacent counties like Elliott, Johnson, Lewis, Martin, Morgan, and Rowan. Additionally, neighboring counties in Ohio and West Virginia are also eligible for assistance.
Key Loan Information and Eligibility Criteria
The Economic Injury Disaster Loan program is open to both agricultural and non-agricultural enterprises that have suffered financial losses as a direct result of the drought conditions. Notably, while agricultural producers like farmers and ranchers are generally excluded, nurseries impacted by the drought are eligible to apply.
Loan amounts can reach up to $2 million, with interest rates set at 4% for small businesses and 3.25% for private nonprofit organizations. Borrowers can access loan terms of up to 30 years, with no interest accrued and no payments due for the first 12 months following the loan disbursement. Loan amounts and terms will be assessed based on the financial circumstances of each applicant.
The purpose of these loans is to provide essential working capital, which may be utilized for various expenses such as fixed debts, payroll, and accounts payable. However, they are not intended to compensate for lost sales or profits.
