Disaster Recovery Loan
We know many businesses and organizations in Eastern Kentucky are looking for better financing options when they face a natural disaster.
That’s where the Mountain Association can come in.
We have a loan option for eligible businesses & organizations impacted by flooding or other natural disasters (from heat waves and cold snaps to windstorms, wildfires, etc):
- Loan Amounts: $1,000 to $100,000+
- Interest Rate: 0% for the first 12 months and then 3.75% if directly impacted; 0% the first six months and then 3.75% if indirectly impacted by disaster
- Minimal principal payments of $1 per $1,000 (For example, if the loan is for $10,000, principal payment for the 0% interest period will be $10)
- Term: Fixed rate up to 10 years
- Collateral options are flexible
- No origination fees and no prepayment penalties
Directly impacted means the physical location of the business was damaged or destroyed. For example, if the pipes burst due to a cold snap; equipment was flooded, etc.
Indirectly impacted means the effects of the disaster prevented normal business operations or sales were reduced due to disaster impacts on the community. For example, if the water was off and a restaurant had to close as a result; if the business owner sustained damage of their residence that reduced time available for business activities; if sales were down due to disaster-related impacts at the community level, such as restaurant sales being down due to availability of free food at relief stations, etc.
If the loan is under $50,000, decisions will be made within 10 business days once we have all the information we need.
*We also have limited funding available for principal repayment periods of 6-12 months
The Mountain Association is a nonprofit lender. This means we can offer flexibility and lend to those who may not otherwise qualify. We offer flexible payments, along with a variety of free services like support from a business consultant and energy experts to evaluate possibilities for lowering your utility bills.
To apply, please visit https://mtassociation.org/loan-inquiry/
A staff member will contact you to discuss next steps.
