SBA Working Capital Loans Available in Kentucky, Indiana and Ohio Following Secretary of Agriculture Disaster Declaration for Excessive Drought

ATLANTA - The U.S. Small Business Administration (SBA) announced today that federal Economic Injury Disaster Loans (EIDLs) are available in Kentucky, Indiana and Ohio for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses from the drought that began on June 1.

The declaration includes the primary counties of Anderson, Bath, Boone, Boyle, Bracken, Campbell, Carroll, Clark, Fayette, Fleming, Franklin, Gallatin, Grant, Harrison, Henry, Jessamine, Kenton, Mason, Menifee, Mercer, Montgomery, Oldham, Owen, Pendleton, Powell, Robertson, Scott, Trimble, Washington and Woodford; and the adjacent counties of Bourbon, Casey, Estill, Garrard, Jefferson, Lee, Lewis, Lincoln, Madison, Marion, Morgan, Nelson, Nicholas, Rowan, Shelby, Spencer and Wolfe in Kentucky; Clark, Dearborn, Jefferson, Ohio and Switzerland in Indiana; and Adams, Brown, Clermont, Hamilton in Ohio.

"When farmers face crop losses and a disaster is declared by the Secretary of Agriculture, SBA working capital loans become a lifeline for eligible small businesses," said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. "These loans are the backbone that helps rural communities bounce back and thrive after a disaster strikes."

Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.  Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions. 

The loan amount can be up to $2 million with interest rates of 4% for small businesses and
3.25% for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant's financial condition. Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.

Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.

For information and to apply online visit SBA.gov/disaster. Applicants may also call the SBA's Customer Service Center at (800) 6592955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to SBA no later than June 30, 2025.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Related programs: Disaster

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