SBA Loans for Disaster Recovery

  • Long term, low-interest loans from the U.S. Small Business Administration help many disaster survivors to return their disaster-damaged homes or businesses to their pre-disaster condition or better.


  • Residents of Breathitt, Clay, Estill, Floyd, Johnson, Lee, Magoffin, Martin and Powell counties in Kentucky are eligible to apply for assistance from FEMA to help with the costs for damage and losses caused by the severe storms, flooding, landslides and mudslides that occurred Feb. 27 through March 14.


  • After you apply for disaster assistance, you may receive a letter from FEMA referring you to SBA. Submitting an SBA disaster loan application is a necessary step to being considered for other forms of disaster assistance.


  • FEMA assistance that may be available if you submit the SBA loan application includes disaster-related car repairs, essential household items and other disaster-related expenses. You do not have to accept the loan, and it is free to apply. If you are approved for the loan and turn it down, you have six months to change your mind and re-activate the application if you discover additional damage or if your insurance settlement is not enough to cover your repairs. Give yourself the widest possible set of options. That could include an SBA loan.


  • Up to 20 percent of your verified loss total can be added to your loan to fund mitigation improvements such as a safe room or storm shelter.


  • Interest rates are as low as 3 percent for businesses, 2 percent for non-profits, and 1.25 percent for homeowners and renters, with terms up to 30 years. No collateral is required for loans of $25,000 or less. There is currently an 18-month payment deferment on new disaster loans, but interest accrues during that period.


  • You may apply online using SBA’s secure website at Email to set up a phone appointment for assistance with your disaster loan application.
  • You may also call SBA’s Customer Service Center at 800-659-2955 or email for more information on SBA disaster assistance. The center is open 8 am. to 8 pm. ET, seven days a week. Individuals who are deaf or hard‑of‑hearing may call 800-877-8339.


  • Businesses may borrow up to $2 million for any combination of property damage or working capital. Homeowners may borrow up to $200,000 from SBA to repair or replace their primary residence. Homeowners and renters may borrow up to $40,000 to repair or replace disaster-damaged personal property, including vehicles. Businesses and non-profits may also borrow working capital.


  • The filing deadline to return applications for property damage is June 22, 2021. The deadline to return economic injury applications is Jan. 24, 2022.
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