UPDATE: Apply for SBA Disaster Loan and Other Considerations
We understand the obstacles and financial hardships COVID-19 has brought to businesses. We have been monitoring federal, state, and local government to stay up-to-date on all matters relating to the ever-evolving COVID-19 situation – and we are here to keep you informed, serve, and assist you.
SBA Disaster Loan Application Assistance
Kentucky has been declared an area eligible for SBA disaster loans, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President. This declaration makes loans of up to $2 million available to small businesses and private, non-profit organizations with fewer than 500 employees.
These loans can be used to help pay fixed debts, payroll, accounts payable, and other bills that can’t be paid due to the loss of revenue caused by a declared disaster. They cannot be used to cover lost profits.
The interest rate is 3.75% for small businesses and 2.75% for non-profits.
The SBA determines terms on a case-by-case basis, based on each borrower’s capacity for making monthly loan repayments. The maximum loan term is 30 years.
SBA has indicated they are strongly committed to providing the most effective and customer-focused response possible.
Small businesses can apply for loans at disasterloan.sba.gov/ela.
It is highly encouraged for you to start and complete the loan application as soon as possible, regardless of whether you think you will have a need or not. With over 30 million small businesses in the United States, the application process is expected to become congested very quickly.
We can assist you with planning, completing the SBA 7(a) loan application, and be available for questions and follow up throughout the process.