As the result of the recent tornadoes and storms in Tennessee on December 9, 2023, the U.S. Small Business Administration wants to ensure that small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes in Allen, Christian, Simpson, and Todd Counties in Kentucky are aware that they can apply for an economic injury disaster loan (EIDL), which is also called a working capital loan, to help them meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. The SBA allows the businesses and nonprofits in the counties that are located next to the primary Tennessee counties that were declared a disaster to be able to apply for an economic injury disaster loan.
An economic injury disaster loan does not require that the affected business or non-profit organization sustained any physical damage to its real estate or to the business personal property.
An economic injury may include, but is not limited to the following circumstances: a business or non-profit organization that has noticed a decrease in its revenue that it believes is the result of the storms or tornadoes; the business or non-profit closed or lost revenue for a period of time due to the storms or tornadoes as the result of road closures, lack of one or more utilities, inability of workers, customers, and/or suppliers to reach the business; customers not making purchases due to the effect of the storm on their income or other issues; damage to the business, etc. As a direct result of the disaster, the business or non-profit organization needs a SBA loan in order to meet its ordinary and necessary financial obligations.
The maximum loan amount is $2 million. The loans do not accrue interest during the first year. In addition, the first payment on the loan is not due for a period of one year. The interest rate for non-profit organizations is 3.25% and for businesses the interest rate is 4.0 %. The loan terms are up to 30 years. A list of temporary locations in nearby Tennessee where applicants can apply to the SBA in person is attached. The deadline to apply for an economic injury disaster loan is September 13, 2024.
Applications are located online at: www.sba.gov/disaster. In addition, applicants can call the SBA for more information at 1-800-659-2955 or at 711 for deaf and hearing-impaired persons.
A SBA Fact Sheet and loan flyer are below which provide additional information about the loans as well.