WASHINGTON — The U.S. Small Business Administration has announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in Louisiana impacted by drought conditions that began Dec. 30, 2025.
The disaster declaration covers dozens of parishes across Louisiana, as well as select counties in Mississippi and Texas. Eligible applicants include small businesses, small agricultural cooperatives, nurseries and private nonprofits, including faith-based organizations, that experienced financial losses related to the drought.
The SBA’s Economic Injury Disaster Loan program provides working capital to help organizations meet financial obligations that could not be met due to the disaster. Loan funds can be used to cover fixed debts, payroll, accounts payable and other operating expenses. Applicants do not need to have suffered physical damage to qualify.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts are available up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms may extend up to 30 years, with no interest accrual or payments due for the first 12 months following the initial loan disbursement. Loan terms are determined based on each applicant’s financial condition.
The SBA does not provide disaster loans to agricultural producers, farmers or ranchers, except for small aquaculture enterprises.
Applications can be submitted online at https://sba.gov/disaster. Additional information is available through the SBA’s Customer Service Center at (800) 659-2955 or by email at [email protected]. Individuals who are deaf, hard of hearing or have a speech disability may access telecommunications relay services by dialing 7-1-1.
The deadline to apply for economic injury assistance is Dec. 10.