The U.S. Small Business Administration (SBA) has approved over $10.1 million in federal disaster loans to assist residents, businesses, and nonprofits in Kentucky impacted by the severe storms, straight-line winds, and tornadoes that struck the state between May 16 and 17, 2025. As of August 6, 2025, the SBA has distributed more than $9.8 million to homeowners and renters, and $278,100 to businesses as part of ongoing recovery efforts.
Chris Stallings, associate administrator for the SBA’s Office of Disaster Recovery and Resilience, emphasized that the funding reflects more than just financial support—it marks progress in the reopening of businesses, the return of displaced families, and the rebuilding of affected communities. He encouraged those still in need to apply before the deadlines.
The SBA’s Economic Injury Disaster Loan (EIDL) program remains open to small businesses, private nonprofits, and small agricultural cooperatives suffering financial losses due to the disaster. While traditional agricultural producers are not eligible, small aquaculture enterprises may apply. These loans can be used for working capital needs even if no physical damage occurred.
In addition to EIDLs, businesses and nonprofits may apply for physical disaster loans of up to $2 million to repair or replace damaged property, equipment, inventory, or other assets. Homeowners and renters are also eligible for loans, with up to $100,000 available to cover damaged personal property and up to $500,000 for primary residence repairs.
Applicants may qualify for an additional loan increase of up to 20% of verified physical damage to support mitigation efforts. This funding can help strengthen homes and businesses against future disasters through improvements like storm shelters, wind-resistant construction, or enhanced drainage systems.
Loan interest rates are set as low as 4% for businesses, 3.625% for nonprofits, and 2.813% for homeowners and renters. Repayment terms extend up to 30 years, and borrowers are not required to begin making payments or accruing interest until 12 months after their first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
To apply, individuals and businesses can visit sba.gov/disaster or contact the SBA Customer Service Center via phone or email for assistance. For those with hearing or speech disabilities, relay services can be accessed by dialing 7-1-1.
The deadline to submit applications for physical damage is August 22, 2025, while the deadline for economic injury applications extends to July 23, 2026.
