Deadline for SBA disaster loans approaching

Loans are still available for those who sustained damages from storms, flooding and landslides in February and March, but time is running out to apply.

Homeowners, renters, businesses and nonprofit organizations that sustained damages in one of 31 disaster area counties in Kentucky, shown above in red, can apply for low-interest physical and economic injury loans from the Small Business Administration.

In addition, small businesses and most private nonprofits in 33 adjacent counties in Kentucky, shown above in yellow, as well as Mingo and Wayne counties in West Virginia and Wise County, Va., are eligible to apply for economic injury loans.

The deadline to apply is July 23.

So far, the SBA has approved 102 disaster loans in Kentucky, for more than $4.4 million.

Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Disaster loans up to $200,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace disaster damaged or destroyed personal property, including automobiles.

Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Examples of mitigation projects to prevent future flooding may include grading and runoff improvement, anchoring outdoor fuel tanks, elevating utilities and service equipment, and installing flood vents, a flood alert system, sump pump, French drain or retaining wall.

Interest rates are as low as 3 percent for businesses, 2 percent for nonprofit organizations, and 1.25 percent for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.