SBA approves disaster loans for LA businesses, residents affected by flood

Updated: Aug. 22, 2017 at 9:05 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

NEW ORLEANS (WVUE) - Louisiana businesses and residents who were affected by rainfall and flooding from Aug. 4 - Aug. 6 will have low-interest federal disaster loans available to them. The announcement was made Tuesday by U.S. Small Business Administration Administrator Linda McMahon. A request for disaster assistance was filed Aug. 17 by Governor John Bel Edwards and the SBA declared a disaster based on the request. The assistance will be available in Orleans, Jefferson, Plaquemines, St. Bernard and St. Tammany Parishes.

"We are pleased the people of Louisiana will have this type of assistance to help them recover," said Governor Edwards. "Flood recovery can be one of the most difficult situations for a family and business to overcome.  It's important we do everything we can to help with that process.  We are thankful the SBA understands that need and approved our request for assistance."

"SBA is strongly committed to providing Louisiana with the most effective and customer-focused response possible, and we will be there to provide access to federal disaster loans to help finance recovery for businesses and residents affected by the disaster," said McMahon. "Getting our businesses and communities up and running after a disaster is our highest priority at SBA."

Residents and business owners who have questions about the disaster loan program and the application process are invited to go a Disaster Loan Outreach Center which will open, Wednesday.

The following is information on the center:

Mid-City Library
Second Floor - Long Room
4140 Canal St.
New Orleans, LA  70119
Opens at 10 a.m. Wednesday, Aug. 23

Mondays - Thursdays, 10 a.m. - 7 p.m.
Fridays, 10 a.m. - 5 p.m.
Closed for Labor Day on Monday, Sept. 4  
Closes at 7 p.m. Thursday, Sept. 14

Both non-profit organizations and businesses of all sizes, looking to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets can borrow up to $2-million. The SBA can also lend additional funds to help business and homeowners with the cost of preventing future damage due to disasters.

The SBA will also provide help for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size, by offering Economic Injury Disaster Loans. The loans will help the businesses meet working capital needs that were caused by the flood disaster. Even if the business did not suffer any property damage, the assistance is available.

For homeowners, up to $200,000 are available to assist in replacing or repairing real estate that was damaged or destroyed. In addition, homeowners and renters could get up to $40,000 to help repair or replace damaged or destroyed 
personal property.

With terms up to 30 years, interest rates could be as low as 3.305% for businesses, 2.5% for private non-profit organizations and 1.75% for homeowners and renters. The SBA will set the loan amounts, which will be based on the applicant's financial condition.

Those who wish to apply online can do so by clicking here. There they can also get additional disaster assistance information and download applications. The applicants can also email the SBA at or call the SBA Customer Service Center at (800) 659-2955 to get additional information on assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339.

Once completed, the applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Copyright 2017 WVUE. All rights reserved.