FRANKFORT, Ky. (KT) – Due to the Kentucky presidential disaster declaration for February’s snow and ice storms, the federal Small Business Administration has low interest disaster relief loans available to some private nonprofits, or PNPs, at 44 counties.
Examples of eligible PNP organizations, which are described as those that do not provide essential government services, include kitchens, shelters for the homeless, museums, libraries, community centers, schools and colleges.
PNPs can borrow up to $ 2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other commercial assets. The interest rate is 2% with terms of up to 30 years. Applicants may be entitled to an increase in the loan amount of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
The SBA also offers loans for economic disasters to help meet working capital needs, such as ongoing operating expenses for PNP organizations. Such assistance is available regardless of whether the organization has suffered any damage to physical property.
PNPs located in Bath, Boyd, Boyle, Breathitt, Carter, Casey, Clark, Clay, Clinton, Elliott, Estill, Fleming, Floyd, Garrard, Greenup, Harlan, Jefferson, Johnson, Laurel, Lawrence, Lee, Leslie, Lewis, Lincoln Madison, Magoffin, Marion, Martin, McCreary, Menifee, Mercer, Montgomery, Morgan, Nelson, Nicholas, Owsley, Perry, Powell, Pulaski, Rockcastle, Rowan, Wayne, Whitley and Wolfe counties can apply.
PNPs should contact their county’s Emergency Manager for information about their organization. The information will be submitted to FEMA to determine eligibility for a Public Assistance grant or whether the PNP should be referred to the SBA for disaster loan assistance.
Applicants can apply online using the electronic loan form via the SBA secure website at DisasterLoan.sba.gov. Information on disaster loans and application forms can also be obtained by calling the SBA at 800-659-2955 or by sending an email to DisasterCustomerService@sba.gov. Loan applications can also be downloaded from sba.gov/disaster.
The deadline for filing claims for damages to physical property is May 31, 2021. The deadline for filing claims for economic damages is January 3, 2022.