Loan Application Deadline Is June 22
Mercer County residents can apply for loans through the U.S. Small Business Administration. The deadline for applications is Tuesday, June 22.
Earlier this week, the SBA announced additional counties in the disaster declaration in Kentucky for businesses and residents affected by severe storms, flooding, landslides and mudslides from Feb. 27 through March 14.
Small businesses and most private nonprofit organizations in the following counties are eligible to apply for SBA Economic Injury Disaster Loans: Allen, Barren, Bell, Bourbon, Boyle, Butler, Carter, Casey, Edmonson, Elliott, Garrard, Harlan, Henry, Knox, Lewis, Logan, McCreary, Menifee, Mercer, Montgomery, Nelson, Owen, Pike, Rowan, Russell, Scott, Shelby, Simpson, Spencer, Washington, Wayne, Whitley and Wolfe in Kentucky; and Lawrence and Scioto in Ohio; and Wise in Virginia; and Mingo and Wayne in West Virginia.
Economic Injury Disaster Loans (EIDL) provide working capital to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, non-profit organizations of all sizes 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.
To qualify, applicants must have a credit history acceptable to SBA and the ability to repay all loans. Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when available, but will not decline a loan for lack of collateral. Applicants are required to pledge any collateral that’s available.
By law, the interest rates depend on whether each applicant has credit available elsewhere. Interest rates are fixed for the term of the loan.
The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.
The disaster declaration covers Anderson, Boyd, Breathitt, Clark, Clay, Estill, Fayette, Floyd, Franklin, Greenup, Jackson, Jessamine, Johnson, Knott, Laurel, Lawrence, Lee, Leslie, Letcher, Lincoln, Madison, Magoffin, Martin, Morgan, Owsley, Perry, Powell, Pulaski, Rockcastle, Warren and Woodford in Kentucky, which are eligible for both Physical and Economic Injury Disaster Loans from the SBA.
To 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.
Individuals who are deaf or hard-of-hearing may call 800-877-8339.
Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
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