Rep. Yarmuth Announces SBA Approval of Disaster Loan Assistance for Kentucky

LOUISVILLE, Kentucky, March 21 -- Rep. John A. Yarmuth, D-Kentucky, issued the following news release:

Congressman John Yarmuth (KY-3) announced that the U.S. Small Business Administration (SBA) will now be offering low-interest federal disaster loans for working capital to Kentucky small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). The disaster declaration makes SBA assistance available in the entire state of Kentucky.

"With great uncertainty before us as we combat this global pandemic, it's absolutely vital that our local small businesses have the resources they need to take care of their workers and survive this crisis," said Yarmuth. "The SBA worked swiftly to approve this request and make funds available to small businesses here in Louisville and throughout our Commonwealth. I'll continue to do my part to ensure that the federal government is doing everything possible to keep Louisvillians safe, quickly flatten the curve, and minimize long-term consequences to our community, public health, and economy."

SBA's Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

These 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 without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. 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.

Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339.

The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.