In the aftermath of a tragic New Year’s attack in New Orleans’ French Quarter, small businesses and nonprofits in Louisiana have access to federal disaster loans to help recover from the economic impact. The U.S. Small Business Administration (SBA) has announced relief measures as part of the Biden-Harris Administration‘s ongoing efforts to support communities affected by disasters.
The disaster declaration covers five parishes: Jefferson, Orleans, Plaquemines, St. Bernard, and St. Tammany. These areas are eligible for the SBA’s Economic Injury Disaster Loan (EIDL) program, which provides financial relief to businesses and private nonprofit organizations (PNPs) that experienced economic losses due to the tragedy.
The EIDL program offers loans of up to $2 million to cover critical expenses such as payroll, fixed debts, accounts payable, and other operating costs. These loans are designed to meet working capital needs caused by the disaster, regardless of whether physical damages were sustained. Small businesses can access loans with an interest rate of 4%, while PNPs can benefit from a slightly lower rate of 3.625%. Loan terms extend up to 30 years, with interest and payments deferred for 12 months from the date of the first disbursement.
This relief comes as part of a broader push to simplify the disaster loan application process and expand financial aid availability. By streamlining procedures, the SBA aims to accelerate the delivery of resources to small businesses, which are vital to local economies and community recovery efforts.
The SBA’s focus on quick and accessible assistance reflects the importance of small businesses in revitalizing areas like the French Quarter, a hub for culture, tourism, and entrepreneurship. While the road to recovery may be long, the availability of these loans is an essential step in helping businesses regain stability and continue contributing to their communities.
Business owners and nonprofits in the affected areas are encouraged to apply for assistance through the SBA’s website. The application deadline for economic injury loans is October 3, 2025, giving eligible entities ample time to secure the funds they need to rebuild and thrive.
With a clear path to financial recovery, Louisiana’s small businesses are poised to overcome the challenges brought on by this tragedy and emerge stronger in the years ahead.
