In a significant move to support local economies, the U.S. Small Business Administration (SBA) has announced the availability of federal disaster loans for small businesses and private nonprofit organizations (PNPs) in Louisiana. This initiative follows the tragic mass casualty incident that took place in New Orleans’ French Quarter on January 1, prompted by a formal request from Louisiana Governor Jeff Landry. The eligible parishes include Jefferson, Orleans, Plaquemines, St. Bernard, and St. Tammany.
Small businesses, small agricultural cooperatives, small aquaculture enterprises, and PNPs that have faced financial setbacks due to the incident can take advantage of the SBA’s Economic Injury Disaster Loan (EIDL) program. These loans aim to provide essential working capital for affected businesses, even if they did not suffer physical damage.
Businesses can utilize the loans to manage fixed debts, payroll, accounts payable, and other necessary expenses impacted by the disaster. Loan amounts may reach up to $2 million, with interest rates fixed at 4% for small businesses and 3.625% for PNPs. The loan terms can extend for up to 30 years, with an initial 12-month payment deferment following disbursement.
In expressing support for the affected community, an SBA official stated, “The SBA stands ready to assist businesses experiencing economic disruption from this devastating tragedy while the community begins the healing process and moves forward.”
To expedite assistance, the SBA has streamlined the disaster declaration process and enhanced the financial relief options available. Interested applicants are encouraged to apply online or reach out to the SBA’s Customer Service Center for assistance. Telecommunications relay services are also available for individuals with hearing or speech disabilities.
The deadline to apply for EIDL assistance is set for October 3, 2025. The SBA’s disaster relief program is dedicated to aiding businesses in the impacted parishes as they navigate the economic challenges stemming from this tragic event.
