Small businesses in Kentucky suffering economic injury because of COVID-19 can now apply for low-interest federal disaster relief loans.
Kentucky's application for an economic injury disaster loan declaration has been approved, and the U.S. Small Business Administration has opened its Economic Impact Disaster Loan (EIDL) program to affected small businesses across the state. The loans, which can provide up to $2 million in assistance for a business, are made available to small businesses and private, non-profit organizations statewide that have suffered substantial economic injury as a result of the COVID-19 outbreak.
Businesses are encouraged to apply on the SBA’s website at disasterloan.sba.gov or by phone at 1-800-659-2955.
About EIDL
The EIDL is a low-interest, fixed-rate loan that can provide up to $2 million in assistance for a small business or private nonprofit organization. Actual loan amounts are based on the amount of economic injury. The EIDL is designed to help businesses meet the necessary financial obligations that they could have met had the disaster not occurred.
SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury. Applicants do not go through a bank to apply, and instead, apply directly to SBA’s Disaster Assistance Program.
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses, or 2.75% for non-profits.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. There is no cost to apply for the loan, and business owners are not obligated to accept the funds if approved.
Businesses can contact the Kentucky Small Business Development Center for help in determining if the EIDL is right for them or if they need assistance in completing the application or have questions regarding the economic recovery process. Additional information is available online at: https://www.sba.gov/funding-programs/disaster-assistance, or by contacting the SBA disaster assistance customer service center at 1-800-659-2955 or by e-mail at disastercustomerservice@sba.gov.