Why It Matters
Tropical Storm Arthur swept across South Louisiana in mid-June, leaving behind significant property damage, flooding, and power outages across multiple parishes and counties. Federal disaster loan programs now provide a financial lifeline for homeowners, renters, and businesses working to rebuild.
What Happened
The U.S. Small Business Administration activated disaster lending programs following President Donald Trump’s major disaster declaration for four Louisiana parishes: Avoyelles, St. Landry, St. Tammany, and Terrebonne. The tropical system formed near the Yucatan Peninsula on June 16 and intensified into a tropical storm off the Texas coast the following day, bringing intense rainfall, tornadoes, flash flooding, widespread power outages, and at least one derailment as it crossed South Louisiana before dissipating.
The storm left at least four fatalities across the affected region—one in Mexico, two in Texas, and one in Mississippi. Beyond the four directly declared parishes, the SBA extended limited assistance eligibility to 18 additional Louisiana parishes and two Mississippi counties (Hancock and Pearl River), focusing on economic injury loans for those areas.
Loan Programs and Terms
The SBA is offering two main types of disaster assistance. Physical damage loans cover property, inventory, and business assets for companies, with a ceiling of $2 million. Homeowners can borrow up to $500,000 to replace or repair a primary residence, while renters and homeowners seeking to replace personal property face a $100,000 cap.
Economic injury disaster loans are available to small businesses, agricultural cooperatives, and private nonprofits in the broader eligible area, even if they sustained no physical damage. These loans address lost revenue and increased operating costs during recovery.
All disaster loans carry favorable terms: borrowers have up to 30 years to repay, with interest frozen and payments deferred for the first 12 months following the initial disbursement. Interest rates vary by borrower type: 4 percent for businesses, 3.625 percent for private nonprofits, and 2.875 percent for homeowners and renters. Borrowers can also request a loan increase of up to 20 percent of verified physical damage to fund mitigation improvements that reduce future disaster risk.
By the Numbers
$2 million — maximum business physical disaster loan amount
$500,000 — maximum homeowner primary residence loan
$100,000 — maximum homeowner and renter personal property loan
4 — Louisiana parishes declared for full disaster assistance (Avoyelles, St. Landry, St. Tammany, Terrebonne)
18 — additional Louisiana parishes eligible for economic injury loans only
2 — Mississippi counties eligible for economic injury loans (Hancock, Pearl River)
30 years — maximum loan repayment term
12 months — interest deferral and payment-free period from first disbursement
Zoom Out
Disaster lending through the SBA has become a routine recovery tool for communities hit by hurricanes, tropical storms, and severe weather across the Gulf Coast and Southeast. Louisiana’s history of tropical cyclones means many residents and business owners are familiar with the application process, though each storm presents fresh challenges as communities rebuild. The economic injury component is particularly important in rural areas where agricultural operations and small businesses may face months of reduced activity even without direct physical damage.
What’s Next
Affected residents and business owners can apply for SBA disaster loans by contacting the SBA customer service center at 800-659-2955 or visiting the SBA website. Applications typically remain open for several months following a disaster declaration, giving property owners time to document damage and calculate their financial needs.