Small Business Administration offering loans for businesses affected by recent drought

BOWLING GREEN, Ky. – This year, Kentucky has experienced extended drought.

Some places around the state are still experiencing severe drought, and at times, the rainfall deficit surpassed the ten inch mark, greatly affecting not just farms but local businesses, especially as we entered into the warmer months.

The Small Business Administration is now stepping in, offering loans to businesses who may have been affected by the drought.

“In partnership with our federal partners, USDA, they take care of the farmers and the actual agriculture growers. We take care of all of the support businesses, and that’s the way to think about it, right? So if you supply trucks or equipment to farms and they’re unable to do that, then your business is down and you’re eligible. If you’re in a around a marina and there’s no water and everybody’s not coming, right, you’re eligible,” said Karen Knapik, a public affairs specialist with the Small Business Administration.

These loans come directly from the United States government and are only offered to businesses in counties and communities that have had drought declarations. Locally, that includes Allen, Barren, Butler, Edmonson, Hart, Logan Metcalfe, Simpson and Warren counties.

The SBA says there is no set amount of money, and it is looking to help as many businesses as possible while keeping interest rates below average.

“It will never get above 4%. It could be lower than that. All of our loans are guaranteed by the government, right? It comes direct from the Treasury. And it’s they’ve been a they’ve been paid for by Congress.  All of our rates are going to be below the market,” Knapik said.

The SBA says that the data shows that those that take advantage of these loans tend to survive longer than those who don’t, even if there is no physical damage that takes place.

“You know, it’s our goal that the businesses say we don’t want anybody to go, right? I mean, that’s the hardest part. Disasters take out businesses, and that’s why SBA helps not only for physical damage, but for this kind of working capital loans to help you when you haven’t had that kind of damage,” Knapik said.

To see if your business qualifies for this loan, you can click here to learn more.