KENTUCKY — After severe storms, flooding, landslides and mudslides wreaked havoc on Kentucky between Feb. 27 and March 14, help is available for disaster recovery. Here’s what you need to know if you’re in need of the assistance:
The U.S. Small Business Administration (SBA) is providing long-term, low-interest loans to help disaster survivors return their damaged homes or businesses to their pre-disaster condition or better.
Residents in Breathitt, Clay, Estill, Floyd, Johnson, Lee, Magoffin, Martin and Powell counties can apply for assistance from FEMA to help with the costs for damage or losses caused by the weather events that occurred Feb. 27 through March 14.
You may receive a letter from FEMA referring you to SBA after you apply for disaster assistance. Submitting an SBA disaster loan application is a necessary step to being considered for other forms of disaster assistance.
If you submit the SBA loan application, FEMA assistance that may be available includes disaster-related car repairs, essential household items and other disaster-related expenses. Applying is free, and you don’t have to accept the loan. If you decide to turn the loan down, you have six months to change your mind and re-activate the application if you find additional damage or if your insurance settlement is not enough to cover repairs.
Up to 20% of your verified loss total can be added to your loan to fund mitigation improvements, like a safe room or storm shelter.
Interest rates are as low as 3% for businesses, 2% for nonprofits and 1.25% for homeowners and renters, with terms up to 30 years. For loans of $25,000 or less, no collateral is required. There’s currently an 18-month payment deferment on new disaster loans, but interest accrues during that time.
Businesses may borrow up to $2 million for any combination of property damage or working capital while homeowners can 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, such as vehicles. Businesses and nonprofits may also borrow working capital.
Want to apply? You can do so online by using SBA’s website, or you can email FOCE-Help@SBA.gov to set up a phone appointment for assistance with your disaster loan application. You can also call SBA’s Customer Service Center at 800-659-2955 or email DisasterCustomerService@sba.gov for more information on the disaster assistance. The center is open 8 a.m. to 8 p.m. EST. Those who are deaf or hard-of-hearing may call 800-877-8339.
The filing deadline to return applications for property damage is June 22, 2021 while the deadline to return economic injury applications in Jan. 24, 2022.