The U.S. Small Business Administration is offering low-interest federal disaster loans to small businesses and private nonprofit organizations in Louisiana affected by the severe winter storm that struck Jan. 23-25.
The SBA issued a disaster declaration following a request from Gov. Jeff Landry on Jan. 30, making Economic Injury Disaster Loans available to eligible applicants in numerous parishes, including Richland and Tensas.
Colden R. Brown, public affairs specialist with the SBA Office of Disaster Recovery and Resilience, said the agency encourages eligible businesses and nonprofits to apply as soon as possible to ensure timely processing and support during the recovery period.
The loans are designed to help businesses and nonprofits recover from economic losses caused by the storm, even if they did not suffer physical damage.
Funds may be used to cover working capital needs such as fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience, said in a statement. “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 are available up to $2 million for economic injury, with interest rates as low as 4 percent for businesses and 3.625 percent for private nonprofit organizations. Interest rates are fixed for the life of the loan.
Terms may extend up to 30 years, depending on the applicant’s financial condition. Interest does not accrue and payments are not due until 12 months after the date of the first loan disbursement.
Applicants must have an acceptable credit history and demonstrate the ability to repay the loan. While collateral may be required, SBA officials note that the program is structured to provide affordable and flexible assistance during recovery.
The deadline to return economic injury applications is Nov. 2.
Businesses and nonprofits may apply online at sba.gov/disaster. Applicants may also contact the SBA Customer Service Center at 800659-2955 or email [email protected] for assistance.
