Boyle residents eligible for SBA disaster loans following tornadoes – The Advocate-Messenger
The United States Small Business Administration (SBA) announced that residents of Boyle County can apply for economic disaster loans for tornado damage on December 11, 2021.
Businesses and residents affected by severe storms, straight-line winds, flooding, and tornadoes beginning December 10, 2021 are eligible for SBA Physical and/or Economic Disaster Loans (EIDLs). The deadline for physical disaster loans has been extended from February 10 to March 14, 2022. The deadline for EIDL applications is September 12, 2022.
Kentucky’s major disaster-declaration counties are eligible for both loans. Some adjacent counties are only eligible for EIDLs.
The SBA added two additional counties to Kentucky’s disaster declaration in January, Barren and Marion. Small businesses and most private nonprofit organizations in the additional adjacent counties of Boyle, Monroe, Nelson and Washington are now eligible to apply for EIDLs.
The disaster declaration covers Barren, Caldwell, Christian, Fulton, Graves, Hart, Hickman, Hopkins, Logan, Lyon, Marion, Marshall, Muhlenberg, Ohio, Taylor and Warren counties in Kentucky. Adjacent counties eligible to apply for EIDLs only are Adair, Allen, Boyle, Breckinridge, Butler, Calloway, Carlisle, Casey, Crittenden, Daviess, Edmonson, Grayson, Green, Hancock, Hardin, Larue, Livingston, McCracken, McLean, Metcalfe, Monroe, Nelson, Simpson, Todd, Trigg, Washington, and Webster in Kentucky.
EIDLs are for landlords and tenants to help meet working capital needs caused by the disaster. Physical disaster loans are for material property damage. EIDL assistance is available whether or not the company has suffered property damage.
Businesses of all sizes, nonprofits, faith-based organizations, small aquaculture businesses, and small agricultural cooperatives can claim losses that their insurance does not cover. EIDLs can be used to meet ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
EIDL interest rates are 2.8% for businesses and 1.875% for nonprofits. Terms can be up to 30 years and no collateral is required for loans of $25,000 or less. Loans can reach up to $2 million. The amount of each loan is limited to the economic harm determined by the SBA and is based on each applicant’s financial situation.
What are the loan eligibility restrictions?
• Uninsured Losses – Only uninsured or otherwise uncompensated losses are eligible. Any insurance product that must be applied to outstanding mortgages is not available to fund disaster repairs and does not reduce loan eligibility. However, any insurance product voluntarily applied to any outstanding mortgage reduces loan eligibility.
• Ineligible Property – Second homes, personal pleasure boats, aircraft, recreational vehicles and similar property are not eligible unless used for business purposes. Goods such as antiques and collections are eligible only to the extent of their functional value. Studs for landscaping, swimming pools, etc. are limited.
• Non-Compliance – Applicants who have not met the terms of previous SBA loans may not be eligible. This includes borrowers who have not maintained flood and/or hazard insurance on previous SBA loans. Applicants can apply online using the Electronic Loan Application on the SBA website at https://disasterloanassistance.sba.gov/ela/s/, and should apply under SBA filing number 17286.
To be considered for all forms of disaster assistance, applicants must register online at DisasterAssistance.gov or download the FEMA mobile app.
Applicants can also call the FEMA Helpline at 800-621-3362.
If applicants have questions, they can call the SBA Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba. gov. Loan applications can also be downloaded at sba.gov/disaster. Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
“Individuals don’t have to wait for their insurance settlement to apply for a loan,” said Courtney Smith, public affairs specialist at SBA. “They can get money from the SBA to start their repairs and then apply their insurance settlement to paying off their loan.”
The deadline for economic injury claims is September 12, 2022.
If applicants want in-person assistance when applying for SBA loans, they can visit a disaster recovery center (BRC), where customer service representatives are available. The Kentucky BRCs and their schedules are listed below.
• BRC 01 Joe Creason Community Center, 1600 Park Avenue, Benton, KY 42025 (9:00A-6:00P CST)
• BRC 02 Hopkins County Regional Chamber of Commerce, 15 E Center St, Madisonville, KY 42431 (8:00A-6:00P CST)
• BRC 03 Western Kentucky University Center for Research & Development, WKU Business Accelerator Center, 2413 Nashville Rd, Room 118, Bowling Green, KY 42104 (8:00A-5:00P CST)
Physical damage disaster loans, which are eligible in major disaster-hit counties except Boyle, are available for businesses, nonprofits, homeowners and renters. Businesses can use loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other assets.
Homeowners and tenants can use loan proceeds to repair or replace a primary residence to its pre-disaster condition. Loans can reach $200,000. The deadline for material property damage is March 14.