The U.S. Small Business Administration (SBA) has announced low-interest federal disaster loans for Louisiana businesses and residents affected by the severe weather and tornado that struck on May 13. This announcement was made by Administrator Isabella Casillas Guzman, highlighting the SBA’s swift response to the request from Governor Landry received on June 13.
This disaster declaration provides SBA assistance in the parishes of Assumption, Iberia, Iberville, Lafayette, Pointe Coupee, St. Landry, St. Martin, and St. Mary. Administrator Guzman emphasized the SBA’s commitment to assisting those impacted by the disaster, stating, “SBA’s mission-driven team stands ready to help Louisiana’s small businesses and residents impacted by the severe weather and tornado. We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, added, “Low-interest federal disaster loans are available to businesses of all sizes, most private nonprofit organizations, homeowners, and renters whose property was damaged or destroyed by this disaster.”
To aid business owners and residents, the SBA will establish a Virtual Business Recovery Center on Thursday, June 20. Additionally, a Virtual Disaster Loan Outreach Center will be opened to assist homeowners and renters. These virtual centers will provide personalized assistance from Customer Service Representatives who can answer questions about the disaster loan program, explain the application process, and help complete electronic loan applications.
The Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center will operate Monday through Friday from 8 a.m. to 4:30 p.m. Individuals can reach out via email at FOCWAssistance@sba.gov or by phone at (916) 735-1160.
Businesses of all sizes and private nonprofit organizations can borrow up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other business assets. Additionally, the SBA can provide extra funds for improvements to protect against future disasters.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofits, the SBA offers Economic Injury Disaster Loans to cover working capital needs caused by the disaster. This economic injury assistance is available regardless of whether the business suffered property damage.
Homeowners can apply for disaster loans up to $500,000 to repair or replace damaged real estate. Both homeowners and renters can receive up to $100,000 to repair or replace personal property, including vehicles.
The interest rates for these loans can be as low as 4 percent for businesses, 3.25 percent for private nonprofits, and 2.688 percent for homeowners and renters. The SBA sets loan amounts and terms based on each applicant’s financial condition, with repayment terms extending up to 30 years. Notably, interest does not begin to accrue until 12 months after the first loan disbursement, and repayments also begin 12 months after the first disbursement.
Applications for disaster loans can be submitted online at SBA.gov/disaster. Additional information is available through the SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For those who are deaf, hard of hearing, or have a speech disability, dialing 7-1-1 will access telecommunications relay services.
The deadline to apply for property damage loans is August 16, 2024, while the deadline for economic injury loans is March 17, 2025.
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