SBA loans available for Tropical Storm Arthur damage

The U.S. Small Business Administration is offering disaster loans to residents, businesses and nonprofit organizations affected by Tropical Storm Arthur last month. 

The SBA’s announcement follows President Donald Trump’s issuance of a major disaster declaration for four Louisiana parishes: Avoyelles, St. Landry, St. Tammany and Terrebonne. The agency is offering physical damage loans and economic injury disaster loans in those parishes, along with limited loan assistance in 18 other parishes and two Mississippi counties, according to a SBA news release.  

The potential cyclone that became Arthur developed June 16 near the Yucatan Peninsula and intensified into a tropical storm off the Texas coast the next day. It traveled across South Louisiana before dissipating a day later. 

Despite its short-lived cycle, the storm brought intense rainfall, tornadoes, flash flooding, power outages, a train derailment and at least four fatalities, including one in Mexico, two in Texas and one in Mississippi.

Businesses and nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace damaged or destroyed property, inventory and other business assets.

Eligible homeowners and renters may borrow up to $100,000 to replace or repair personal property such as clothing, furniture, cars and appliances. Homeowners may also apply for up to $500,000 to replace or repair their primary residence.

Applicants may be eligible for a loan increase of up to 20% of their verified physical damage for mitigation improvements such as insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future disasters.

The SBA’s economic injury disaster loans are available to eligible small businesses, agricultural cooperatives and private nonprofits impacted by financial losses directly related to Tropical Storm Arthur. Economic injury loans are available even if the business or organization didn’t suffer any physical damage. They can be used to cover debts, payroll and other bills that could not be paid due to the disaster.

Parishes eligible for only the economic injury disaster loan program are Acadia, Assumption, Catahoula, Concordia, Evangeline, Jefferson, Lafayette, LaSalle, Lafourche, Orleans, Pointe Coupee, Rapides, St. Bernard, St. Martin, St. Mary, Tangipahoa, Washington and West Feliciana. Hancock and Pearl River counties in Mississippi are also eligible.

Interest rates on a SBA loan can be as low as 4% for businesses, 3.625% for private nonprofits and 2.875% for homeowners and renters, with terms of up to 30 years. Interest does not begin to accrue and payments are not due until 12 months from the date of the first loan disbursement. The SBA said it sets loan amounts and terms based on each applicant’s financial condition.

To apply online, visit sba.gov/disaster. Applicants can also call SBA’s customer service center at (800) 659-2955 or email [email protected] for more information. People who are deaf or have hearing or speech disabilities can dial 711 to access the Telecommunications Relay Service.