The Kentucky Association of Counties

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The Kentucky Association of Counties

Covid-19 Newsroom

SBA COVID-related relief loans announced for businesses in Kentucky

By Gracie Lagadinos, Government Affairs Associate
Governor Andy Beshear recently announced that the U.S. Small Business Administration (SBA) has approved disaster relief loans for small businesses in Kentucky that have been adversely affected by the COVID-19 pandemic.

Download a Kentucky-specific fact sheet HERE.

The federal SBA Economic Impact Disaster Loan program offers up to $2 million in low-interest working capital loans to help ease the economic burden some businesses are facing due to temporary loss of revenue.

Businesses in ALL Kentucky counties are eligible.


Businesses that are eligible for the loan include small businesses, small agricultural cooperatives, small aquaculture businesses and most private nonprofit organizations. Criteria for the loans are based upon credit history, repayment and eligibility. Eligible companies must be physically located in a county that has declared an emergency and has suffered economic losses due to the COVID-19 outbreak. A P.O. Box in the disaster area would not qualify as a physical presence.

SBA Economic Impact Disaster Loan Terms

Interest rates for the loans are 3.75 percent for small businesses and 2.75 percent for a nonprofit organization, up to 30 years with a fixed rate.

Funds may be used to pay fixed debts, accounts payable and other bills that can no longer be paid strictly due to the COVID-19 outbreak. The loans are not intended to replace lost profits or to fund expansion.

Loans more than $25,000 require collateral, such as real estate. According to the SBA’s website, the SBA will not decline an entity due to a lack of collateral but require borrowers to list what is available.


Applications for the SBA Economic Impact Disaster Loan program can be found at There is no cost to apply and no obligation to take the loan if offered. Applicants with an existing SBA Disaster Loan are still eligible for this program; however, the credits can’t be consolidated.