The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Louisiana of the approaching June 16 deadline to apply for federal disaster loans. These loans are intended to offset economic losses caused by Hurricane Francine, which occurred from September 9-12, 2024.
The disaster declaration includes several Louisiana parishes: Ascension, Assumption, East Baton Rouge, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Charles, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa and Terrebonne.
Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses and private nonprofits with financial losses directly related to the hurricane. The SBA cannot provide disaster loans to agricultural producers except for small aquaculture enterprises.
EIDLs are designed for working capital needs resulting from the disaster and are available even if no physical damage occurred to the business or nonprofit. The loans can be used for various expenses such as fixed debts and payroll.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," said Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for nonprofits with terms up to 30 years. Interest does not accrue until one year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or through other contact methods provided by the SBA Customer Service Center.