March 22, 2020
Click here to apply for loan through SBA website
Louisiana small businesses gain access to SBA disaster loans in wake of coronavirus
The U.S. Small Business Administration has approved all affected small businesses in Louisiana suffering substantial economic injury as a result of COVID-19 for low-interest federal disaster loans for working capital.
The SBA provides low-interest disaster loans to help businesses and homeowners recover from declared disasters.
Sen. John Kennedy (R-La.) released the following statement after the U.S. Small Business Administration declared Louisiana an economic disaster in the wake of the coronavirus. “Now is the time to mobilize resources to save American lives and livelihoods. Louisiana businesses and their employees are struggling through no fault of their own, and they need relief fast. When our state and country recover from the coronavirus, we want to ensure that we have a strong economy to return to. Low-interest loans for small businesses are a key to Louisiana’s economic success in the future. I’ve been talking with the administration about our great state and am glad to see the Small Business Administration make this resource available to hardworking Louisianians,” said Kennedy.
An Economic Injury Disaster Loan assistance declaration issued by the Small Business Administration makes loans available to small businesses and private, nonprofit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19). The Economic Injury Disaster Loans will provide up to $2 million in assistance, and can provide economic support to help small businesses overcome the temporary loss of revenue due to the issue. The loans can be used fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate for the loans is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
The loans are offered with long-term repayments — up to a maximum of 30 years, according to the agency. The terms will be decided based on each borrower’s ability to repay.
For more information about the Small Business Administration’s program visit: https://www.sba.gov/page/guidance-businesses-employers-plan-respond-coronavirus-disease-2019-covid-19, call the Small Business Administration disaster assistance customer service center call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org.
Congressman Steve Scalise Discusses COVID-19’s Impact on Louisiana Small Businesses
On Wednesday, March 18, 2020, Congressman Steve Scalise hosted a maximum-capacity conference call with hundreds of Louisiana small businesses, noting it is his focus on Capitol Hill to avoid mass layoffs and do everything possible to keep companies afloat. The U.S. Senate passed legislation today to mandate paid leave for some workers with opt-out provisions for small businesses – a measure that already passed the U.S. House of Representatives. Congressman Scalise also outlined possibilities for a forthcoming massive stimulus package that could include direct financial aid to millions of households and additional loan provisions for small businesses. After hearing concerns of small businesses on the call, he noted the possibility for grant programs utilizing Community Development Block Grants – similar to aid that was offered following Hurricanes Katrina and Rita. The Congressman promised to keep everyone updated and directed calls to his office with specific questions and suggestions for relief.
The Small Business Administration’s Regional Director Justin Crossie was also on the call, noting that Louisiana’s request for eligibility for small business disaster recovery loans has been approved. Any small business in the state with temporary revenue losses from COVID-19 can now apply for up to $2 million in loan assistance at 3.75% interest rates with a long-term repayment plan. Applications can be made online at: https://www.sba.gov/funding-programs/disaster-assistance
LABI Advises Congress to Support Both Workers and Cash-Strapped Small Businesses
LABI sent a letter to the Louisiana Congressional delegation to express the concerns of small business with new mandates in the latest draft of H.R. 6201 – The Families First Coronavirus Response Act. (Read the letter HERE). LABI urged leaders to consider both the needs of workers and cash-strapped small businesses and seek ways to address both. Various changes were made to the legislation in the U.S. Senate, which passed the bill today by a vote of 90-8. Congressional leadership has publicly expressed a desire to address ongoing concerns with the new mandates in a sizable federal aid package now being developed.
AT&T Offers Added Relief for Customers, Small Business
AT&T, a LABI member company, has announced that they will aid their customers during the Coronavirus crisis over the next 60 days by:
For additional information, including options for distance learning and employees working from home, visit AT&T's Coronavirus website.
Facebook Offering $100 Million In Cash Grants and Ad Credits for Small Business
In response to the strain put on so many small businesses by COVID-19, Facebook will be offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where they operate. Facebook will share more details as they become available.You can check their small business website for additional details and information as it becomes available.