SBA Offers Financial Support to Louisiana After New Year's Tragedy
New Orleans, Saturday, 4 January 2025.
The U.S. Small Business Administration is providing up to $2 million in loans to Louisiana businesses affected by the New Year’s Day tragedy in New Orleans to aid recovery.
Immediate Federal Response
In a swift response to the January 1st terrorist attack in New Orleans, the U.S. Small Business Administration (SBA) announced on January 3rd, 2025, a comprehensive financial relief package for affected businesses [1]. The disaster declaration encompasses five parishes: Jefferson, Orleans, Plaquemines, St. Bernard, and St. Tammany [1]. This federal assistance comes at a crucial time, as the attack resulted in 15 fatalities and left at least 35 people injured [5], causing significant disruption to local businesses during the peak tourist season.
Loan Terms and Eligibility
The SBA is offering loans of up to $2 million with favorable terms, including a 4% interest rate for small businesses and 3.625% for private nonprofit organizations, with repayment terms extending up to 30 years [1]. Eligibility extends to small businesses, agricultural cooperatives, aquaculture enterprises, and private nonprofit organizations that experienced financial losses due to the incident, even if they didn’t sustain physical damage [1]. SBA Administrator Isabel Casillas Guzman emphasized that the agency ‘stands ready to support and help provide disaster assistance to businesses suffering economic impact’ [1].
Future Uncertainty
This relief program comes at a critical juncture, as recent reports indicate potential changes to SBA disaster lending programs. According to analysis from December 30, 2024, the incoming Trump administration might consider eliminating the SBA disaster lending program based on Project 2025 recommendations [2]. Such changes could significantly impact future disaster relief efforts, particularly in rural communities, which make up approximately 20% of the U.S. population and are often more vulnerable to disasters [2].
How to Apply
Affected businesses can submit their applications through the SBA’s online portal at SBA.gov/disaster or receive assistance through the SBA’s Customer Service Center at (800) 659-2955 [1]. The SBA has streamlined the disaster declaration process under the current Biden-Harris administration, making it more accessible for affected businesses to receive support [1]. Those with hearing disabilities can access information through the telecommunications relay service (7-1-1) [1].