More than 440,000 Louisiana small businesses in all 64 parishes are eligible to apply for low-interest federal disaster loans, which will be made available to eligible firms suffering substantial economic injury as a result of the coronavirus (COVID-19), Gov. John Bel Edwards announced today.
“COVID-19 is a unique crisis affecting all walks of life, and that means Louisiana’s small business community will continue to be heavily impacted by disruptions to their operations,” Edwards said. “We are pleased to work with SBA and the federal government in providing this critical working capital to our small business owners who are suffering from the necessary measures installed due to the Coronavirus. Our hope is that these SBA disaster loans will be an important part of sustaining their businesses and providing support to their employees who make up over half of Louisiana’s private-sector workforce.”
Impacted small businesses can seek federal Small Business Administration (SBA) disaster aid and apply for up to $2 million in working capital to pay for fixed debts, payroll, accounts payable and other bills that can’t be paid because of the COVID-19 disaster.
The loan terms are 3.75 percent interest rate for small businesses and 2.75 percent for nonprofits, and may be extended up to 30 years to keep payments affordable.
Information on the SBA’s three-step process for disaster loans can be found here.
Louisiana Economic Development also offers COVID-19: Business Resources, an online guide to assistance available for impacted businesses, which can be found here.
“LED continues to monitor business conditions throughout Louisiana and we are identifying every possible avenue of support for our businesses, large and small, so that we can help them navigate the unique challenges of COVID-19,” LED Secretary Don Pierson said. “We are grateful to SBA Administrator Jovita Carranza and Gov. Edwards for securing this critical SBA disaster assistance as an important part of our recovery and sustainability efforts.”