SOMERSET, KY – Eastern Kentucky business owners impacted by recent flood damage can access up to $5,000 in low-interest loan funds, thanks to a new emergency financing program created by SKED.
Leadership at the 36-year-old nonprofit lender began assessing the flood’s effects on its current loan clients in the affected area on Monday morning. It had designated $250,000 in funding to loan existing business owners in the region by Wednesday.
SKED Executive Director Brett Traver says the organization’s response is a natural progression in line with its mission.
“Seeing the destruction caused by the flooding has been heartbreaking for everyone here,” Traver said. “Helping small business owners is what we are built for and can bring to the recovery efforts. We’re pleased to be able to do it.”
SKED, a Community Development Financial Institution serving 45 counties in Southern and Eastern Kentucky, has established an Emergency Business Disaster Loan Program available to qualifying small business owners in any disaster-impacted counties.
Up to $5,000 in direct business loans will be available at zero interest with no payment or interest accrual for one year. The three-year loan will follow with two years of payments at 4% interest.
Details of the loan program are as follows:
– Maximum loan amount: up to $5,000
– Interest Rate: 0% – no payments for first 12 months, no interest accrual
– Term: three years – two years to pay back at 4% interest
– Requires Personal Guaranty of Principal Owners
– Proof Company was in business at the time of the flooding (07/26/22)
– No Collateral is required
Applicants are asked to provide proof of impacts to their business from the floods via photos or other information.
The loan program is open until November 1, 2022, or until funds are exhausted.
The regional, nonprofit lender will host in-person mobile loan application sites next week in U.S. Small Business Administration (SBA) disaster-designated communities to provide qualifying businesses immediate access to working capital financing. See our events section on this website for regional sites and times.
For more information on the Emergency Business Disaster Loan Program, contact Bob Burgess, SKED’s Director of Lending, at firstname.lastname@example.org or (606) 677-6100.