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Small businesses across Kentucky can start applying for federal disaster loans through the Small Business Administration, Gov. Andy Beshear said Saturday.

LOUISVILLE, Ky. (WDRB) -- No one quite knows the loss Kentucky's economy will take from the coronavirus pandemic.

But the Louisville-based Pegasus Institute is trying to predict some of the potential impact.

If Kentucky faced a recession only half as bad at the Great Recession, the state would have a $195 million deficit by the end of fiscal year 2022, the Institute said.

If the commonwealth were hit twice as hard as the Great Recession, Kentucky would have a $352 million deficit by the end of fiscal 2022.

While $352 million would account for only about 3% of Kentucky's annual budget of about $12 billion, the Institute said its analysis did not consider the impact of "increased appropriations for COVID-19 related services such as healthcare, declining investment performance for Kentucky public pension systems, increased costs for Medicaid" and other items.

The Pegasus Institute describes itself as an "independent, non-partisan, privately funded research organization" focused on public policy.

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