United we stand, divided we fall” is the Kentucky state motto. And, over the last few years of dealing with devastating disasters, the people of Kentucky have truly exemplified this statement. 

In December 2021, parts of Western Kentucky were ravaged by tornadoes. The state was tested again not long after when Eastern Kentucky flooded to the tune of more than $1 billion in damages in July 2022. These unprecedented natural disasters only added to the devastation these areas felt from the global pandemic that changed everyone’s way of life.

But the commonwealth didn’t hesitate to act. Through multi-agency collaborations, the U.S. Small Business Association (SBA) and other partners, Kentucky unified to help put these communities back together.

Help is On the Way

Primarily, the state assisted residents and businesses in accessing emergency dollars from the tornado and flood relief funds. They also set up “one-stop-shop” disaster recovery centers with the assistance of the Federal Emergency Management Agency (FEMA) to meet the immediate needs of the survivors, such as food and shelter.

According to Kentucky Gov. Andy Beshear, specific programs were also created for those industries most impacted by the natural disasters. For example, the tornadoes hit the agricultural industry especially hard. Mayfield Grain Company, a family owned and operated grainery in Mayfield, was completely wiped out. 

Mayfield is a small town about 110 miles northwest of Nashville and full of mom-and-pop farms that depend on the Mayfield Grain Company. “Without the grainery here, they don’t have the transportation to take it somewhere else,” said Mitchell Guthrie, owner of Guthrie Farms, in a Team Kentucky video. “I’m afraid without the grainery, they’re going to give up.”

To offset some of the costs for small business farmers and keep them up and running, Gov. Beshear established the Team Western Kentucky Tornado Relief Fund, which received donations totaling $52 million. The funds helped save the crops that year and meant the farmers could continue to employ their workers. The relief money subsidized other recovery needs, including funeral expenses for each of the victims and for rebuilding homes. 

Brad Thomas, manager of economic development for Kentucky’s Touchstone Energy Cooperatives, said, “The secret to getting these communities back on their feet is helping them where they need it most.”

The tornadoes heavily affected the manufacturing industry as well. A Mayfield candle factory — Mayfield Consumer Products — was destroyed. As a result, the plant transferred operations to a facility in Hickory, about 10 minutes north, until they can rebuild.

After the flooding in Eastern Kentucky, even more money poured into the state. For example, the show Good Morning America featured a small, Letcher County grocery store ruined by flood waters. Letcher County is near the Kentucky-Virginia border. Consequently, people from around the world donated to help the victims. Gov. Beshear said, “People had seen the devastation and came together to help.”

Reconstruction in the area is possible because of additional donations to the Team Eastern Kentucky Flood Relief Fund of about $13 million. The state is working to create new high-ground communities by rebuilding outside of the floodplains to avoid future disasters. But a major challenge is the acquisition of property and finding it on higher ground and/or on flat land.

In Knott County, the original acreage was donated for such development. Because of the contribution, they can rebuild houses, schools, parks, medical facilities, etc. as part of a long-term plan. Knott County is about 130 miles southeast of Lexington.

Gov. Beshear said, “What keeps people in a community is hope for a better future.” And that’s exactly what they’re aiming for.

Overcoming the Housing Shortage

The natural disasters in the eastern and western portions of the state emphasized the need for available housing across the state.

Appalachian Regional Commission dollars have gone into building housing in the wake of the floods in Eastern Kentucky. Gov. Beshear is the state’s co-chair of this organization. And they are taking a unique approach by repurposing unused land. 

Thomas said, “Disaster creates a new way to reinvent yourself. There are opportunities today that are very apparent.” And this is one of them.

The rolling hills of Eastern Kentucky beckon travelers to soak in its beauty.

Photo courtesy of Kentucky Cabinet for Economic Development

Reclaimed surface mines are emerging as key potential sites for large housing developments. The sites have sat empty for decades in some cases, so local and state officials are in talks with property owners to secure land for subdivisions.

Abandoned Mine Land Economic Revitalization (AMLER) grant money is aiding as well. Established in 2016, the AMLER program funds projects that return legacy coal mining sites to productive uses through economic and community development. 

Business Will Be Booming

Along with housing, Eastern and Western Kentuckians need jobs. Attracting businesses to the area is key to creating jobs and thus, restoring the economy and taking it to new heights. And Kentucky business is on the upswing.

All told in 2021, the commonwealth shattered economic development expectations. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs in the coming years.

In the Graves County/Mayfield area, for example, Osmundson Mfg. Co. recently revealed it was creating jobs. The company makes disc blades for both the agriculture and construction industries. The $12.5 million project is expected to create 80 jobs. During the announcement, Gov. Beshear said he saw the CFO of the company get choked up because of how much these jobs mean to the community. 

Another notable example, announced at the end of January, is Precision Sonar & Outdoors LLC in Marshall County, right next door to Graves County. This $2.2 million investment will create 12 jobs. The company is a producer of GPS and sonar mounting systems.

Ascend Elements Battery Recycling is the single largest investment Western Kentucky has ever seen. It’s a $1 billion project with 400 new jobs in Hopkinsville. The company recycles discarded lithium-ion batteries, typically from cell phones and computers, to produce electric vehicle batteries. A win for Kentucky and a win for sustainable energy. (See p. 34.)

Despite the challenges Kentucky has faced, it’s looking like there’s light at the end of the tunnel. According to Thomas, “Opportunity is still available in Kentucky. We are seeing record numbers and we are not seeing it slow down. We saw $2.9 billion in investment in rural communities in our territory last year.”

Gov. Beshear summed it up best by saying, “It’s incredibly exciting.”