SBA Offers Disaster Assistance To LA Businesses, Residents Affected By August Torrential Rainfall, Flooding
NEW ORLEANS – Low-interest federal disaster loans are available to Louisiana businesses and residents affected by the torrential rainfall and flooding that occurred Friday, Aug. 4 – Sunday, Aug. 6, U.S. Small Business Administration’s administrator Linda McMahon said.
The U.S. Small Business Administration (SBA) acted under its own authority to declare a disaster in response to a request SBA received from Gov. John Bel Edwards on Thursday, Aug. 17.
The disaster declaration makes SBA assistance available in Jefferson, Orleans, Plaquemines, St. Bernard and St. Tammany parishes.
“SBA is strongly committed to providing Louisiana with the most effective and customer-focused response possible, and we will be there to provide access to federal disaster loans to help finance recovery for businesses and residents affected by the disaster,” said McMahon. “Getting our businesses and communities up and running after a disaster is our highest priority at SBA.”
“Low-interest federal disaster loans are available to businesses of all sizes, most private nonprofit organizations, homeowners and renters whose property was damaged or destroyed by this disaster,” said Michael Ricks, SBA’s Louisiana district director.
SBA representatives are on hand at the Disaster Loan Outreach Center, located at the Mid-City Library, second floor – Long Room, 4140 Canal St., to answer questions about SBA’s disaster loan program, explain the application process and help each individual complete their application. The center will be open on the days and times indicated below. No appointment is necessary.
• Closed for Labor Day on Monday, Sept. 4
• Mondays – Thursdays, 10:00 a.m. – 7:00 p.m.
• Fridays, 10:00 a.m. – 5:00 p.m.
• Closes at 7:00 p.m. Thursday, Sept. 14
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future, reps said.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage, reps said.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Interest rates can be as low as 3.305 percent for businesses, 2.5 percent for private nonprofit organizations and 1.75 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online, receive additional disaster assistance information and download applications here
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org more information on SBA disaster assistance.
Individuals who are deaf or hard of hearing may call (800) 877-8339.
Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Tx 76155.
The filing deadline to return applications for property damage is Monday, Oct. 23.
The deadline to return economic injury applications is Tuesday, May 22, 2018.
The SBA’s Louisiana resource partners offer the following services to help businesses recover from the effects of torrential rainfall and flooding:
• Louisiana Small Business Development Centers (LSBDCs)
LSBDCs are providing the following services to help small businesses impacted by the disaster at no charge for any services:
• Counseling for financial, accounting, marketing and other post-disaster challenges
• Management and technical assistance
• Business planning to help business owners re-establish their operations and plan for their future
• Help in reconstructing damaged or destroyed business records
• Assistance with updating or rewriting business plans
Xavier University of LA
Division of Business – Xavier South – Room 203
909 S Jefferson Davis
New Orleans, LA 70125
• Veterans Business Outreach Center
Through a cooperative agreement, SBA has 20 organizations participating as Veterans Business Outreach Centers designed to provide entrepreneurial development, business training, counseling and mentoring for eligible veterans who own or are starting a small business.
Contact the Veterans Business Outreach Center below:
VBOC at Mississippi State University
60 Technology Blvd., Suite 105-D
Starkville, MS 39759
• SCORE – Helping America’s Small Businesses
SCORE has experts in virtually every area of business management to mentor small businesses, reps said. Mentors are available to help small businesses with their disaster recovery at no charge for individual and team counseling.
• Free online disaster preparedness/recovery resources for small business here
• Matching volunteer business-management mentors with clients in need of expert advice
• In-depth counseling and training with small business owners and managers
• Help to identify business problems, determine the causes and find solutions
• Maintaining a confidential and personal relationship
New Orleans SCORE
365 Canal St., Suite 2820
New Orleans, LA 70130
• Women’s Business Center – (WBC)
WBCs provide technical training and counseling to women and others who are currently in business or thinking about starting a business. Assistance is targeted to meet specific needs whether a beginner or seasoned entrepreneur.
Contact the WBC listed below:
WBC located with the Urban League of Greater New Orleans
4640 S Carrolton Ave., Suite 230
New Orleans, LA 70119
The SBA provides low-interest, long-term disaster loans to businesses of all sizes, private nonprofit organizations, homeowners, and renters to repair or replace uninsured/ underinsured disaster damaged property. SBA disaster loans offer an affordable way for individuals and businesses to recover from declared disasters.
Step 1: Apply for loan
• Apply: 1) online; 2) in-person at a disaster center; or 3) by mail.
• Apply online at the SBA’s secure website
• As a business of any size, you may borrow up to $2 million for physical damage.
• As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for economic injury.
• As a small business, you may apply for a maximum business loan (physical and EIDL) of $2 million.
• As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.
• As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.
Step 2: Property verified and loan processing decision made
• SBA reviews your credit before conducting an onsite inspection to verify your losses.
• An SBA verifier inspects your disaster damaged property to estimate your total physical losses.
• A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
• A loan officer works with you to provide all the necessary information needed to reach a loan determination. SBA’s goal is to arrive at a decision on applications within two to three weeks.
• A loan officer will contact you to discuss the loan recommendation and your next steps. You will also be advised in writing of all loan decisions.
Step 3: Loan closed and funds disbursed
• SBA will prepare and send your loan closing documents to you for your signature.
• Once the SBA receives your signed loan closing documents, an initial disbursement will be made to you within 5 days:
Physical damage: $25,000
Economic injury (working capital): $25,000
• A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan amount.
• Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance proceeds.