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Tue, November 18, 2025
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Kentucky Governor Announces $75,000 EIDL Relief for Businesses Affected by UPS Crash
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Published in Business and Finance on Tuesday, November 18th 2025 at 12:25 GMT by WAVE3- 🞛 This publication is a summary or evaluation of another publication
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Kentucky Governor Beshear Announces Economic Injury Disaster Loans in Response to UPS Crash
On November 18 2025, Kentucky Governor Andy Beshear issued a statewide announcement detailing a new economic injury disaster loan (EIDL) program designed to help businesses affected by the recent UPS crash that wreaked havoc on local supply chains and small‑business operations across the Commonwealth. The announcement, released via the governor’s official website and amplified by the Kentucky Disaster Recovery Office (KDRO), outlines the eligibility criteria, application process, and the financial relief that businesses can access through the U.S. Small Business Administration (SBA) partnership.
1. Background: The UPS Crash and Its Ripple Effects
The “UPS crash” refers to a catastrophic collision involving a UPS cargo truck and a major distribution center in Lexington, Kentucky, on October 29 2025. The incident caused extensive damage to the facility, leading to a multi‑day shutdown of the UPS hub that services the entire state. The closure has disrupted the timely delivery of goods for hundreds of businesses—especially those in the food‑service, retail, and manufacturing sectors—creating a sudden loss of revenue and forcing many to shut down temporarily.
Governor Beshear’s announcement emphasizes that the crisis is a “disaster” in the economic sense, as defined by the SBA, because it has caused “sudden and significant decline in revenue” for many businesses. The governor called on the state and federal partners to act quickly and urged all affected businesses to apply for assistance.
2. The EIDL Program: What It Covers
Under the new program, businesses that have experienced economic injury due to the UPS crash can receive up to $75,000 in low‑interest, partially forgiven loans. The loans are structured as follows:
| Feature | Details |
|---|---|
| Maximum loan amount | $75,000 |
| Interest rate | 3.75 % (federal rate for small businesses) |
| Forgiveness period | 7‑year amortization with partial forgiveness after 3 years |
| Collateral | No collateral required for qualifying businesses |
| Eligibility | Businesses that (a) are located in Kentucky, (b) have been in operation for at least one year, (c) demonstrate revenue loss directly linked to the UPS crash, and (d) have no prior EIDL or SBA loans in default |
The SBA’s EIDL program is specifically tailored to “help businesses weather economic injury caused by a disaster, such as the UPS crash.” The governor’s press release stresses that the loan does not cover payroll but can be used for working capital, inventory purchases, rent, and other operating expenses.
3. Eligibility Criteria
To qualify, businesses must meet the following:
- Location – Must have a physical presence in Kentucky.
- Business Age – Must have been in operation for a minimum of 12 months.
- Revenue Loss – Must document a revenue decline of at least 25 % compared to the same period in the previous year, attributable to the UPS hub shutdown.
- Crisis Documentation – Must provide evidence such as purchase orders, invoices, or delivery logs showing the impact of the UPS crash.
- Compliance – Must not be in default on any previous SBA loans.
The announcement also clarifies that sole‑propeller and family‑owned businesses are eligible, but the lender will require a formal business entity structure for larger enterprises.
4. How to Apply
The application process is streamlined to get funds into business hands quickly:
- Online Application Portal – All applications must be submitted through the SBA’s EIDL portal (link: https://www.sba.gov/eidl). The portal will automatically generate a “Pre‑Qualify” form based on the business’s financial statements.
- Required Documents – Businesses must upload:
- Tax returns for the past two years
- Bank statements covering the last six months
- A detailed statement of the impact (e.g., loss of delivery windows, inventory write‑downs)
- Proof of ownership and business registration
- KDRO Review – After submission, the Kentucky Disaster Recovery Office will review each application to verify that the business meets the state‑specific criteria. KDRO will contact applicants within 3 business days to confirm receipt and discuss any additional documentation needed.
- Loan Approval – Upon final approval, the SBA will disburse the funds via a check or direct deposit. The typical turnaround time is 7–10 business days from the date of approval.
The governor’s office highlighted that early application is crucial, as the SBA has limited capacity to process large volumes of requests. KDRO will hold a virtual “information session” on November 25 at 2 p.m. Eastern Time, where business owners can ask questions and learn how to prepare their paperwork.
5. Additional Resources and Links
- Governor’s Press Release – A full copy of Beshear’s announcement is available at https://www.wave3.com/2025/11/18/gov-beshear-announces-economic-injury-disaster-loans-response-ups-crash/
- SBA EIDL Portal – https://www.sba.gov/eidl
- KDRO Contact Page – https://www.dnr.ky.gov/kdro
- Business Assistance Hotline – 1‑800‑772‑6453 (toll‑free)
The announcement also points to the Kentucky Small Business Development Center (SBDC) network for additional guidance on applying for SBA loans and managing cash flow during the recovery period.
6. Gov. Beshear’s Message to Kentucky Businesses
In the closing remarks, Governor Beshear urged the public to “take advantage of this historic relief effort” and emphasized that the state’s economic resilience depends on the rapid recovery of its small‑business community. He thanked the SBA for partnering in the effort and pledged that the KDRO would continue to monitor the situation closely, ready to deploy additional resources if the UPS crash’s impact proves more severe than initially projected.
“Kentucky’s economy is built on hard work, innovation, and the determination of its entrepreneurs,” Beshear said. “When an unexpected event like the UPS crash threatens that foundation, it is our duty to provide swift, practical solutions that keep our businesses afloat and our communities thriving.”
7. What to Expect Next
- Application Open – Immediately, with a deadline of December 15 2025 for the first round of funding.
- Additional Funding Rounds – Depending on uptake and availability, the KDRO may open subsequent rounds in early 2026.
- Monitoring – The state will release monthly updates on the number of loans approved, disbursed, and the total dollar amount of relief granted.
With the governor’s endorsement and the SBA’s backing, Kentucky businesses now have a concrete path to recover from the economic shock that the UPS crash has inflicted. By following the outlined steps and leveraging the resources linked above, affected entrepreneurs can secure the financial support they need to stay operational, safeguard jobs, and rebuild stronger than before.
Read the Full WAVE3 Article at:
[ https://www.wave3.com/2025/11/18/gov-beshear-announces-economic-injury-disaster-loans-response-ups-crash/ ]
