WASHINGTON — The U.S. Small Business Administration announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in parts of Louisiana and Texas following an amended governor’s certification related to the Jan. 23-25 severe winter storm.
The amended declaration makes assistance available to small businesses and private nonprofit organizations in the Louisiana parishes of DeSoto, Natchitoches and Sabine and the Texas counties of Panola and Shelby that were affected by the storm.
The disaster declaration also covers the Louisiana parishes of Bienville, Bossier, Caddo, Caldwell, Catahoula, Concordia, DeSoto, East Carroll, Franklin, Jackson, Lincoln, Madison, Morehouse, Natchitoches, Ouachita, Red River, Richland, Sabine, Tensas, Union, Webster and West Carroll; the Arkansas counties of Chicot, Lafayette and Miller; the Mississippi counties of Adams, Claiborne, Issaquena, Jefferson and Warren; and the Texas counties of Panola and Shelby.
Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based organizations, with financial losses directly related to the disaster. The SBA does not provide disaster loans to agricultural producers, farmers or ranchers, except for aquaculture enterprises.
Economic Injury Disaster Loans are intended for working capital needs caused by the disaster and are available even if the business did not suffer physical damage. Funds may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid if the disaster had not occurred.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “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 may reach up to $2 million, with interest rates as low as 4% for businesses and 3.625% for private nonprofit organizations. Terms may extend up to 30 years. Interest does not accrue and payments are not due until 12 months after the first loan disbursement. Loan amounts and terms are determined by the SBA based on each applicant’s financial condition.
The deadline to return economic injury applications is Nov. 2.
Applicants may apply online at sba.gov/disaster, call the SBA’s Customer Service Center at 800-659-2955, or email [email protected] for additional information. Individuals who are deaf, hard of hearing or have a speech disability may dial 7-1-1 to access telecommunications relay services.