The U.S. Small Business Administration (SBA) has announced the provision of low interest federal disaster loans to Louisiana businesses, nonprofits, and residents who experienced physical damages and economic setbacks due to severe storms and flooding from March 29 to April 2. This development follows a disaster declaration issued by the SBA in response to Governor Jeff Landry's request on April 15.
The affected areas include the Louisiana parishes of Acadia, Evangeline, Jefferson Davis, Lafayette, St. Landry, and Vermilion. Businesses and nonprofits can apply for business physical disaster loans, with borrowing limits up to $2 million for repairing or replacing disaster-damaged real estate, machinery, equipment, inventory, and other assets. Homeowners and renters may apply for up to $100,000 to replace or repair personal property. Additionally, homeowners can seek up to $500,000 for repairing or replacing their primary residence.
Eligible applicants may receive a loan increase up to 20% of their verified physical damages for mitigation improvements. These improvements could include insulating pipes, walls, and attics, weather stripping doors and windows, and installing storm windows to protect against future disasters.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, emphasized the role of Disaster Loan Outreach Centers: “When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover.”
The SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, agricultural cooperatives, nurseries, and private nonprofit organizations facing economic losses related to this disaster. These loans cover working capital needs even if no physical damage occurred.
Starting April 17, SBA customer service representatives will assist individuals at the Disaster Loan Outreach Center (DLOC) in Acadia Parish with loan applications, providing guidance on available recovery programs. The center, located in City of Rayne’s Green Room, welcomes walk-ins and scheduled appointments at appointment.sba.gov. It operates Monday through Friday, from 9 a.m. to 6 p.m.
Interest rates start at 4% for small businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters, with repayment terms up to 30 years. Payment is deferred for 12 months after the first loan disbursement. Loan amounts and terms depend on the applicant's financial situation.
For online applications, visit sba.gov/disaster. Additional assistance is available at (800) 659-2955 or disastercustomerservice@sba.gov. For telecommunications relay services, dial 7-1-1.
The deadline for returning physical damage applications is June 16, with economic injury applications due by January 16, 2026.