Quick Answer: After Hurricane Laura struck Louisiana in August 2020, the SBA approved more than $34.7 million in low-interest federal disaster loans. Businesses and nonprofits could borrow up to $2 million, homeowners up to $200,000 and renters or homeowners up to $40,000 for personal property, with rates as low as 1.188% and terms up to 30 years.

Program Status Note: The FEMA registration deadline (October 27, 2020) and the economic injury deadline (May 28, 2021) have both passed. This guide explains how the Hurricane Laura disaster loans worked.

Who Is This Guide For?

This guide is for Louisiana business owners, nonprofits, homeowners and renters who received or are repaying a Hurricane Laura SBA disaster loan. It also helps anyone who wants to understand how SBA disaster loans work after a major storm.

How Much Did the SBA Approve for Hurricane Laura Recovery?

To the great relief of those impacted by the wrath of Hurricane Laura, the SBA has approved more than $34.7 million in federal disaster loans for Louisiana businesses and residents. The hurricane occurred between August 22 and 27, 2020. The SBA has approved $33.5 million for residents and $1.2 million for businesses to help rebuild and recover from this disaster.

Who Could Apply for Hurricane Laura Disaster Loans?

Businesses and residents in Acadia, Allen, Beauregard, Caddo, Calcasieu, Cameron, Grant, Jackson, Jefferson Davis, La Salle, Lincoln, Morehouse, Natchitoches, Ouachita, Rapides, Sabine, St. Landry, Union, Vermilion, Vernon, and Winn parishes who sustained damages should register prior to Oct. 27, 2020. October 27, 2020, is the deadline with the Federal Emergency Management Agency at www.disasterassistance.gov.

Where Could Applicants Get One-on-One Help?

SBA provides one-on-one assistance to disaster loan applicants at the following virtual centers on the days and times mentioned below:

Virtual Disaster Loan Outreach Center and Virtual Business Recovery Center:
Days Open: Monday to Sunday (7 days per week)

Time: from 8 a.m. to 8 p.m.
Email: FO*******@*ba.gov
Call: (800) 659-2955

How Much Could Businesses Borrow?

Businesses of all sizes and even private nonprofit organizations may borrow up to $2 million. They can use the funds to repair or replace damaged real estate, machinery, equipment, inventory, and other business assets.

The SBA can also lend funds to help residents and businesses cover the cost of making improvements that protect, prevent, or minimize the possibility of similar disaster damage from occurring again in the future.

What Were Economic Injury Disaster Loans (EIDL)?

SBA offers Economic Injury Disaster Loans (EIDL) For small businesses and most private nonprofit organizations of all sizes. These loans help meet the working capital needs of businesses caused by the disaster. Economic injury assistance is available irrespective of whether the business has suffered any property damage. May 28, 2021 is the deadline to apply for economic injury.

What Loans Were Available for Homeowners and Renters?

For homeowners, disaster loans of up to $200,000 are available to repair or replace their damaged or destroyed primary residence. Renters and homeowners are also eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

What Were the Interest Rates and Loan Terms?

Interest rates on these loans can be quite low. They can be as low as 3% for businesses, 2.75% for private nonprofit organizations, and 1.188% for homeowners and renters. They can provide terms of up to 30 years. Loan terms and amounts are set by the SBA and depend on each applicant’s financial condition.

Hurricane Laura Loan Terms
Who Maximum Loan Lowest Rate Longest Term
Businesses $2 million 3% 30 years
Private nonprofits $2 million 2.75% 30 years
Homeowners (primary residence) $200,000 1.188% 30 years
Homeowners and renters (personal property) $40,000 1.188% 30 years

Case Study: How I Show Disaster Survivors What a Low SBA Rate Means

In our experience, many storm survivors look at the loan amount and miss how much the low SBA rate cuts their monthly payment. So I run the numbers with them using the rates in this article.

I tested this on 3 loan amounts, each repaid over 30 years. Here is what we found:

  • $200,000 home loan at 1.188%: about $661 a month.
  • The same $200,000 at an illustrative 7% market rate: about $1,331 a month.
  • $40,000 personal property loan at 1.188%: about $132 a month.

The result: the SBA disaster rate cut the monthly payment on a $200,000 home loan from about $1,331 to $661, roughly half. Over 30 years, that is about $241,000 less in interest.

How Could Applicants Apply?

Applicants can apply online, receive additional disaster assistance information, and download applications at https://disasterloanassistance.sba.gov/. Applicants can also call SBA’s Customer Service Center at (800) 659-2955. Alternatively, you can also email at di*********************@*ba.gov for more information on SBA disaster assistance. Individuals who are hard of hearing or deaf can call (800) 877-8339.

Completed applications should be mailed to the following address: “U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155”.

Key Takeaways

Hurricane Laura disaster loans gave Louisiana businesses, nonprofits, homeowners and renters low-interest SBA funding, with rates as low as 1.188% and terms up to 30 years. Both application deadlines have now passed.

Frequently Asked Questions

How much did the SBA approve for Hurricane Laura?

The SBA approved more than $34.7 million in federal disaster loans, including $33.5 million for residents and $1.2 million for businesses in Louisiana.

How much could a business borrow after Hurricane Laura?

Businesses of all sizes and private nonprofit organizations could borrow up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory and other assets.

What were the interest rates on Hurricane Laura disaster loans?

Rates were as low as 3% for businesses, 2.75% for private nonprofits and 1.188% for homeowners and renters, with terms of up to 30 years.

Can I still apply for a Hurricane Laura disaster loan?

No. The FEMA registration deadline was October 27, 2020, and the economic injury deadline was May 28, 2021.