SBA outlines disaster loans, recovery centers for businesses hit in New Year’s attack

At a City Council meeting, representatives of the U.S. Small Business Administration briefed council members on disaster-relief lending and local resources available to businesses and nonprofits affected by the Jan. 1 attack in downtown New Orleans. SBA staff said the governor issued an economic injury disaster proclamation, opening SBA Economic Injury Disaster Loan (EIDL) programs for affected businesses and nonprofits in Orleans Parish.

The presentation said eligible businesses and nonprofits may apply for EIDL working-capital loans up to $2,000,000 to cover fixed expenses and working capital needs to maintain operations during recovery. SBA staff said approved borrowers receive a 12-month deferment and 12 months of 0% interest accrual; after that period interest and repayment terms apply. For typical business loans SBA staff said interest rates for businesses are fixed at 4% (as described during the presentation). The SBA representative also said the processing center may approve amounts above the $2,000,000 statutory cap for entities that are major local employers, and that approved borrowers may request increases in loan amounts for up to two years from the date of approval.

SBA staff told the council two business recovery centers opened immediately: a center at Palace Café, 605 Canal Street (hours Monday–Friday 9 a.m.–5 p.m.; Saturday 11 a.m.–5 p.m.) and a location at the New Orleans Public Library (hours listed during the presentation as 10 a.m.–5 p.m. and 11 a.m.–4 p.m.). The application deadline stated in the presentation is Oct. 3, 2025; presenters urged businesses to seek information early so they can secure preapproval if needed and avoid delays if additional economic injury occurs later in the recovery period.

Council members asked about program caps and outreach. Council Member Thomas asked whether there is a funding cap; an SBA representative said Congress recently reappropriated funds and there is not an immediate cap, and the SBA can exceed the $2,000,000 statutory limit in cases where the processing center determines an exception is warranted. The presenters also described outreach plans targeted to minority-owned and underserved businesses, including coordination with African American and Hispanic chambers of commerce, the Small Business Development Center, door-to-door outreach and distribution of flyers, and participation in local chamber events. SBA staff named Administrator Isabel Casillas Guzman in describing the agency’s new loan administration policies.

Presenters reminded the council the business recovery centers will be closed on Martin Luther King Jr. Day but otherwise are open for one-on-one consultations. Council members thanked SBA staff for the rapid deployment of resources and emphasized the need for proactive outreach to businesses on Bourbon Street and in surrounding commercial corridors.

Ending: SBA staff asked businesses or parish emergency managers in neighboring parishes with impact concerns to contact local emergency management for guidance on eligibility; they encouraged businesses to visit the recovery centers for help with applications and questions about loan terms.