The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Louisiana affected by the January 2025 winter storm. The declaration was made following a request from Governor Jeff Landry on February 4.
This disaster declaration includes several parishes in Louisiana: Acadia, Ascension, Assumption, Beauregard, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. Helena, St. James, St. John The Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne,Vermilion , Washington and West Baton Rouge; as well as Amite and Pike counties in Mississippi and Newton and Orange counties in Texas.
Eligible entities can access the SBA’s Economic Injury Disaster Loan (EIDL) program if they suffered financial losses due to the storm. However,the SBA cannot provide disaster loans to agricultural producers except for aquaculture enterprises.
EIDLs are designed to cover working capital needs caused by disasters even if no physical damage occurred to the business premises. They can be used for fixed debts,payroll,and other expenses that would have been covered had the disaster not happened.
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.625% for private nonprofits over terms of up to 30 years.Interest does not accrue nor are monthly payments required until a year after initial disbursement.The SBA will assess eligibility based on each applicant's financial condition.
Starting Friday February 7,SBA customer service representatives will be available at a Virtual Business Recovery Center to assist with questions about the loan program,the application process,and completing applications.The center operates Monday through Friday from 8:00 a.m.to 4:30 p.m.PST but will close on February 17 for President’s Day.Applicants are encouraged by SBA officials "to submit their loan applications promptly" since processing is prioritized by order received.
Applications can be submitted online via SBA.gov/disaster or inquiries directed through phone at (800)659-2955,email at disastercustomerservice@sba.gov ,or telecommunications relay services dialed through 7-1-1.The deadline for economic injury applications is November 25.
The U.S.Small Business Administration remains committed towards supporting entrepreneurs through resources essential in starting,growing or recovering their businesses amidst declared disasters.More information about its services can be found on www.sba.gov .