Kentucky Flood Small Business Loan

in this article:

  • flooding in kentucky
  • Local Resources for Small Businesses Affected by Flooding
  • Financial options for businesses affected by a disaster
  • Other Small Business Loan Options

flooding in kentucky

During the last week of July 2022, several severe storms Was informed Heavy rainfall causes flash flooding and river flooding in eastern Kentucky and central Appalachia. caused historic rain 44 deaths Devastating damage to and homes in the area resulted in fatal travel conditions.

During the five-day storm, weather radar estimated a total of 16 inches of precipitation, with up to 10 inches falling during a 24-hour period through July 27.th and July 28th, The counties most affected included Clay, Owsley, Knott, Leslie, and Letcher, although damage from the disaster spread throughout the state and into Virginia, including severe flooding, landslides, and landslides in areas below those counties. During periods of heavy rain, rescuers were evacuating residents by helicopter and fast boats as no road vehicles could reach the areas. According to weather.gov“These rain totals over a five-day period were incredibly rare, with a probability of less than 1 in 1,000.”

Now five months after the storm, 2022 is coming to an end, Kentucky residents and business owners are still dealing with the effects of floodwaters. according to a msn reporterCurrently the primary concerns for residents include:

  • Limited federal and local financial assistance despite above-average FEMA participation
  • Damage to transport infrastructure such as roads and bridges
  • Limited resources to deal with property damage and displaced tenants

A shocking number of homeowners are still living in temporary housing such as shelters, trailers, campers and even tents. Countless small businesses have not been able to resume normal operations, and those that have are overwhelmed by the amount of restocking and repairs required to reopen. As if the floods weren’t devastating enough, they came at a time when so many businesses were still reeling from the effects of the coronavirus pandemic, the war in Ukraine last year supply chain issuesand the devastating tornado that struck another part of the state just a few months earlier.

Local Resources for Small Businesses Affected by Flooding

There are many resources available to residents and small business owners who were affected by Governor Andy Beshear described as, “One of the most important and deadliest floods, Like most declared disasters, many government agencies at the local and federal levels as well non profit Organizations worked to communicate available resources. the commonwealth of kentucky was officially announced A designation of major disaster by President Joe Biden on July 29, 2022, which meant that federal funds would be allocated to aid in recovery efforts.

business recovery center

US Small Business Administration opened three SBA Business Recovery Center Near disaster affected areas in Kentucky. Centers were opened at the following locations to provide assistance to small business owners interested in applying disaster loanConnecting with federal aid, or other business resources.

  • Perry County – Opened on August 3, 2022 at Hazard Community and Technical College
  • clay county – Opened August 4, 2022 at Eastern Kentucky University – Manchester
  • Letcher County – Opened August 4, 2022 in Appalachian Groundswell

local relief fund

After the disaster was declared, local government agencies and non-profit organizations were able to apply for federal funding to assist affected residents and businesses. In addition to the federal funds and grants made available, several organizations collected donations nationally and within affected communities.

local disaster assistance

In addition to raising funds, local agencies, news outlets, social media campaigns and unaffected businesses worked together to help affected individuals obtain assistance.

  • Telecom Relay Services – Governed by the Kentucky General Assembly, the Public Service Commission established a Telecommunications Relay Service (TRS) program to provide disaster information to persons who are deaf, hard of hearing and speech impaired.
  • organization – Crisis Cleanup is an organization that brings together volunteers, local relief funds and community groups to help small business owners and homeowners rebuild after severe flooding in Kentucky. Services they provide at no charge include trash removal, roofing tarps, debris removal, mold abatement, and appliance removal.
  • Kentucky Power Electrical safety is essential during flood recovery efforts. Kentucky Power provided free resources, including inspections and meter replacement, to homes and businesses affected by the storm.

income tax relief

Families and businesses affected by flooding or hurricanes in Kentucky were eligible for income tax relief in the following counties: Breathitt, Casey, Clay, Cumberland, Floyd, Harlan, Johnson, Knott, Lee, Leslie, Letcher County, Lincoln, Magoffin, Martin, Owsley , Perry, Pike County, Powell County, Whitley and Wolfe. Affected taxpayers who filed for a valid extension with the IRS have until November 15, 2022, to file Kentucky tax returns for personal income tax, corporate income tax and limited liability entity tax. In addition to those extensions, estimated income tax payments that were due on September 15, 2022, were also extended till November 15th fixed date.

sales tax relief

To qualify for sales tax relief, personal property damage, property loss, or business interruption had to occur in one of 13 counties that received a federal disaster declaration. Relief included a refund of Kentucky sales and taxes paid to purchase construction materials to be used in the recovery efforts.

Financial options for businesses affected by a disaster

Beginning in August 2022, several federally funded financial assistance programs were implemented to assist entrepreneurs affected by the Kentucky flood reconstruction. Disaster loans and financial assistance made available through Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA).

fema disaster assistance

After the disaster was declared, FEMA made Kentucky a priority for providing life-saving resources and disaster response services. Those affected by hurricane damage are encouraged to apply for FEMA disaster assistance online DisasterAssistance.gov or by calling 800-621-3362. In addition to the major disaster declaration, FEMA set up several mobile registration centers to help small businesses and residents apply for federal disaster assistance and access other recovery resources.

The Disaster Recovery Centers established by FEMA have now been transformed into Multi-Agency Resource Centers (MARCs) and are maintained by the Commonwealth. MARC aims to be a one-stop shop for survivors for any recovery assistance they need, including pending FEMA application updates, help with filing applications and appeals, and providing disaster loan contacts.

SBA Disaster Loan

US Small Business Administration (SBA) is a government agency that helps small business owners, including providing financial assistance and low-interest disaster loans. SBA loans offer low interest rates, low down payments and longer repayment terms. Disaster loans are given to businesses that operated in declared disaster areas and certain approved adjacent areas, including parts of Virginia during the Kentucky flood. Check SBA Declaration Status to confirm if your area has been declared a disaster area here,

  • Economic Injury Disaster Loan (EIDL) , EIDL loan There are funding programs for small businesses, agricultural cooperatives, and most private for-profit or non-profit organizations that have suffered economic losses as a result of a declared disaster. EIDL loan amounts of up to $2 million are available to eligible businesses in affected areas of Kentucky and are approved based on the amount of economic damage the business has recorded.
  • physical calamity loan – Physical disaster loan Covers the costs of repair and replacement of uninsured or under-insured property damaged by rain, flood, landslide, or mudslide. The proceeds can be used to replace or repair commercial real estate, equipment and inventory. These loans are issued for up to $2 million with repayment terms of up to 30 years. Unlike other types of business financing, the SBA can increase the physical disaster loan amount by up to 20% to protect borrowers’ assets from future damage.

How to apply for a disaster loan

Small Businesses May Be Affected by Severe Hurricanes in July 2022 Apply for a Disaster Loan On SBA’s secure website SBA.gov or at an SBA disaster center. Before applying for any type of disaster assistance, business owners must first register with FEMA and obtain a registration number. Documents that may be requested to complete the loan application process include:

  • Borrower’s contact information and proof of identity, such as a passport or social security card
  • fema registration number
  • real estate deed or lease information
  • insurance policy information
  • business bank account details
  • employer Identification Number (EIN), available from the IRS
  • List of damaged commercial properties

Other Small Business Loan Options

Physical and economic injury disaster loans can be an excellent financial resource for small business owners affected by any natural disaster, but it can take up to 90 days to qualify for the right loan and go through the approval process. It is also common for insurance claims to take more than six weeks, unless the covered business receives any reimbursement or recovery funding. Getting operations back up and running is a priority for business owners, considering some fast funding loan options Might be the fastest way to make repairs, rebuild working capital, and get back to work.

term loan

A term loan A conventional type of loan where the borrower receives an approved amount of money upfront and repays the loan as per the repayment terms. Business term loans can be secured or unsecured and may require a personal guarantee. Term loans can be approved for amounts up to $500,000 and require moderate creditworthiness of the business owner. The application process for term loan can be done in person at the bank or online with online lenders like Biz2Credit,

business line of credit

A business line of credit Revolving credit is a type of credit, such as a business credit card, where the borrower is approved for a maximum credit limit and can withdraw cash when cash flow is low. Monthly payments for credit lines include interest, which is calculated only on the total amount of funds withdrawn. Lines of credit are a great tool for business owners who can’t wait for disaster loan proceeds or insurance payouts but don’t have perfect credit. One property management company Was able to secure a line of credit through Biz2Credit and at the same time get help fixing his business credit score.

ground level

The rainfall that hit Kentucky in the summer of 2022 was unprecedented and many small business owners needed help repairing the damage. Local resources were made available to those affected through business recovery centers and local relief funds. Affected entrepreneurs are encouraged to apply for and be considered for FEMA disaster assistance disaster loan option, Interested applicants may wish to explore faster funding loan options such as term loans offered by Biz2Credit, so that they can resume normal operations at the earliest.

How to get quick access to funding

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