SBA Fact Sheet -- Disaster Loans

U.S. SMALL BUSINESS ADMINISTRATION FACT SHEET - DISASTER LOANS

LOUISIANA Declaration #20645 & #20646 (Disaster: LA-20005)

Incident: HURRICANE FRANCINE

occurring: September 9 through September 12, 2024

in the Louisiana parishes of: Ascension, Assumption, Jefferson, Lafourche, St. Charles, St. James,

St. John The Baptist, St. Mary & Terrebonne;

and for economic injury only in the contiguous Louisiana parishes of: East Baton Rouge, Iberia, Iberville, Livingston, Orleans, Plaquemines, St. Martin, St. Tammany & Tangipahoa

Application Filing Deadlines: Physical Damage: November 18, 2024; Economic Injury: June 16, 2025

What Types of Disaster Loans are Available?

• Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.

• Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

• Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.

What are the Credit Requirements?

• Credit History – Applicants must have a credit history acceptable to SBA.

• Repayment – Applicants must show the ability to repay all loans.

What are the Interest Rates?

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery. An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere. Interest rates are fixed for the term of the loan. The interest rates applicable for this disaster are:

Physical Damage Loan Types No Credit Available Elsewhere Credit Available Elsewhere

Home Loans 2.813% 5.625%

Business Loans 4.000% 8.000%

Non-Profit Organizations 3.250% 3.250%

Economic Injury Loan Types

Businesses & Small Agricultural Cooperatives 4.000% N/A

Non-Profit Organizations 3.250% N/A

What are Loan Terms?

The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay. Borrowers may be required to provide collateral.

What are the Loan Amount Limits?

• Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.

• Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.

• Business Loan Ceiling – The $2,000,000 statutory limit for business loans applies to the combination of physical, economic injury, mitigation and refinancing, and applies to all disaster loans to a business and its affiliates for each disaster. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

• Home Loans – SBA regulations limit home loans to $500,000 for the repair or replacement of real estate and $100,000 to repair or replace personal property. Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.

What Restrictions are there on Loan Eligibility?

• Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.

• Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited.

• Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.

Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.

Is There Help with Funding Mitigation Improvements?

If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, etc. Mitigation loan money would be in addition to the amount of the approved loan but may not exceed 20 percent of total amount of physical damage to real property, including leasehold improvements, and personal property as verified by SBA to a maximum of $500,000 for home loans. It is not necessary for the description of improvements and cost estimates to be submitted with the application. SBA approval of the mitigating measures will be required before any loan increase.

Is There Help Available for Refinancing?

• SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property or 50% or more of the value of the structure), and (3) intends to repair the damage.

• Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment, up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment.

• Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the loan for real estate repair or replacement.

What if I Decide to Relocate?

You may use your SBA disaster loan to relocate. The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily. If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.

Are There Insurance Requirements for Loans?

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.

Applications for disaster loans may be submitted online using the MySBA Loan Portal at https://lending.sba.gov or other locally announced locations. Please contact the SBA’s Customer Service Center by email at disastercustomerservice@sba.gov or by phone at 1-800-659-2955 for further assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Legislation Introduced to Help Lower Costs for Small Business

September 17, 2024

Cassidy, Shaheen Introduce Legislation to Help Lower Costs for Small Businesses

 

WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Jeanne Shaheen (D-NH) today introduced the Helping Small Businesses to Hedge Risk and Insure against Volatile Expenses (Helping Small Businesses THRIVE) Act. It directs the U.S. Small Business Administration (SBA) to create a program that helps small businesses lock in the cost of commodities, like gasoline or lumber, to protect against the future volatile price of energy and other expenses.

 

“Small businesses are particularly vulnerable to high inflation costs,” said Dr. Cassidy. “The Helping Small Businesses THRIVE Act gives small businesses in Louisiana the tools they need to create jobs, expand operations, and compete with large companies.”

“Small businesses are the backbone of our economy and deserve a level playing field. By empowering them to lock in prices for key commodities, we can help small businesses compete with larger businesses, create good-paying jobs and expand their business,” said Senator Shaheen. “I hosted a field hearing in the Granite State last week to discuss the resources available for small businesses to lower their energy costs. Today, I’m proud to introduce bipartisan legislation that proposes a new resource to help small business owners keep costs under control and secure a vibrant future for our Main Streets.”

 

“Businesses grow and create jobs most effectively when they can plan with certainty,” said John Dearie, president of the Center for American Entrepreneurship (CAE). “Sudden changes in business conditions -- especially unexpected increases in critical input costs -- can damage or destroy even the best-run businesses. That's why large companies commonly protect themselves from input inflation by locking in costs by way of sophisticated financial derivative instruments. But most new and small businesses lack the resources and expertise necessary to effectively protect themselves. The Helping Small Businesses THRIVE Act will address that vulnerability by establishing a new program administered by the Small Business Administration that will finally provide new and small businesses the input price protection enjoyed for years by large companies. Participating businesses will be able to recapture losses sustained from price volatility regarding critical commodities like gasoline, diesel, natural gas, lumber, and potentially other inputs, that they rely on. The legislation will provide small businesses the price security and confidence they need to plan, thrive, and continue creating jobs. CAE thanks Senators Jeanne Shaheen (D-NH) and Bill Cassidy (R-LA) for their leadership, and looks forward to working with them to ensure swift passage of the legislation.”

“With the cost of doing business rising rapidly in recent years due to inflation, small businesses have been forced to choose between raising their prices or lowering their margins. No small firm wants to be in that position, which is why we're glad to see a bipartisan solution like the Helping Small Businesses THRIVE Act that will help lower costs and ultimately allow small businesses to better compete with large corporations that are less sensitive to commodity price spikes,” said John Arensmeyer, Founder and CEO, Small Business Majority.

 

“It’s no surprise: small companies are inherently the most vulnerable to market fluctuations and to changes in the cost of the inputs that they need to keep their businesses running. Despite representing over 99% of all companies in the United States, and employing roughly half of all private sector workers, small businesses still struggle to leverage that market power to ensure they have a consistent, reliable cost basis for the commodities that underpin their operations. That’s why innovative proposals such as Chair Shaheen’s Helping Small Businesses to Hedge Risk and Insure against Volatile Expenses (THRIVE) Act are so important. This bill is a tremendous first step towards leveling the playing field for small companies across the country, enabling them to responsibly hedge commodity market risks—something historically only available to their largest competitors. The National Small Business Association is proud to support the Helping Small Businesses THRIVE Act, and we look forward to continuing to work with Chair Shaheen’s office to ensure small companies get a fair shake and can continue to power the U.S. economy for generations to come,” said Todd McCracken, President & CEO, National Small Business Association. 

 

To help lower costs for small businesses, the Helping Small Businesses THRIVE Act gives small businesses the cost-certainty, time and confidence to build and grow their endeavors. It directs SBA to create a program that allows small businesses to hedge their cost exposure from commodities, like diesel or electricity. The program offers small businesses options for how to lock in their prices going forward – with a focus on inputs that already have liquid markets and technical assistance to help businesses take full advantage of the program. Along with that guidance, SBA would conduct outreach to small businesses to ensure they are aware of the program and can benefit from it.

 

The program would first start to lock in costs for gasoline, diesel and up to three additional commodities, with special attention given to standard utilities like natural gas or electricity. Additional commodities and utilities whose costs could be locked in could be added to the program after surveys and feedback from small businesses to assess which products would be most beneficial to them. Eligible small businesses would exclude traders and financial businesses to ensure this program focuses on small businesses and is not a tool for speculators.

 

For example:

  • Business A locks in $3.50 per gallon of gasoline for 1000 gallons six months from now, locking in their gas cost at $3,500 ($3.50/gallon x 1000 gallons).

  • If gas goes up to $5 per gallon, business A will still pay $5,000 ($5.00/gallon x 1000 gallons) at the gas station.

  • HOWEVER, because business A locked in a price of $3.50 per gallon from their hedge through the program, business A would receive a payment of $1,500 ($1.50 x 1000), leaving business A’s net cost at the $3,500 they planned for.

 

Large businesses already protect themselves from inflation by locking in costs through hedging transactions. The Helping Small Businesses THRIVE Act gives small businesses the ability to access those same tools to protect against the volatile price of gasoline and other expenses.

 

A one pager on the bill is available here. 

 

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Project Cynthia Press Release 5-15-25

Cynthia Louisiana’s pilot site aims to revolutionize waterway management of water hyacinth

GIBSON, La., May 15, 2024 – Cynthia Louisiana LLC, a subsidiary of the Belgium-based In-Between-International corporation, announces the opening of its inaugural operational pilot site in Gibson.

This milestone marks a significant step forward in the battle against the water hyacinth, which clogs waterways. The operation is poised to revolutionize waterways management by transforming this invasive species into a game-changing new fiber, offering a sustainable solution to a global environmental challenge. The fiber will serve as raw material to manufacture such items as nursery pots for plants and cat litter.

For decades, water hyacinth has plagued freshwater ecosystems worldwide, ranking among the top 10 most invasive species with seemingly insurmountable eradication challenges. Traditional methods, including herbicide spraying, have yielded limited success, leaving authorities grappling with escalating costs and persistent infestations.

Cynthia Louisiana's innovative treatment unit represents a paradigm shift in weed control, offering a sustainable alternative to chemical interventions. By harnessing cutting-edge technologies, the facility will process water hyacinth into a versatile fiber, mitigating its environmental, and social impact while creating employment opportunities and fostering economic growth.

"We are thrilled to unveil Cynthia Louisiana's first operational site, a testament to our commitment to environmental stewardship and sustainable development," remarked Philippe Gustin, CEO of Cynthia Louisiana. "Our mission is not only to reclaim control of our waterways but also to empower communities and revitalize Louisiana's rich ecological heritage."

Cynthia Louisiana partnered with Louisiana Wildlife & Fisheries, University of Louisiana Lafayette, and Terrebonne Economic Development Authority to develop and locate this operation in Gibson La. The Barataria Terrebonne National Estuary Program also recently announced its intention to fund research by Cynthia Louisiana to optimize production of biodegradable pots.

Rebeka Bahadorani, founder of the project, who undertook the mission to tackle the problem in 2010, added, "This journey began with a vision to address a pressing environmental challenge. Today, we stand at the forefront of innovation, leading the charge in transforming water hyacinth from a nuisance to a valuable resource."

“It has been a true pleasure working with the project Cynthia team since the inception of this venture,” said TEDA CEO Cohen B. Guidry. “The waterways of Terrebonne parish will benefit greatly from this concept. As we turn toward a more natural way of clearing our waterways of this nuisance, we are helping our environment, creating jobs and benefiting the local economy. We look forward to a long relationship with this company and the expansion of its operations to waterways across the parish and the state.”

With this groundbreaking solution, Cynthia Louisiana is leading the path for the rest of the world toward a successful resolution to the water hyacinth crisis. By showcasing the efficacy of this innovative approach, this project aims to inspire global action and collaboration in the fight against invasive species.

The launch of Cynthia Louisiana's treatment unit signals a new era for Louisiana's water management, promising to restore the region's freshwater ecosystems. Through innovation and collaboration, Cynthia Louisiana aims to turn the tide on invasive species and pave the way for a brighter, more sustainable future.

 

For media inquiries and further information, please contact:

Philippe GUSTIN

Lafayette, Louisiana 

Phone: (1) 337 296 7770

E-mail : pgustin7770@gmail.com

 

Press Release: TEDA Welcomes Melissa Adams to its Board of Directors

Terrebonne Economic Development Authority (TEDA) would like to welcome a new board member, Ms. Melissa Adams. 

 

Melissa Adams is the Corporate Controller and Treasurer at Danos, LLC.  Melissa has been with Danos for 17 years with varying roles and increased responsibilities.  She started with Danos, LLC working on special projects, moved to Billing Manager, then to International Controller and currently as the Corporate Controller. 

 

Melissa holds an undergraduate degree from the University of Maryland and an MBA in Finance from Cal Lutheran University.  She holds a current CMA Certified Management Accountant certification.  She also was awarded a gold level badge from the IMA for Leadership.  She held financial positions at both Kinkos Corporate and WellPoint Blue Cross of California. 

 

Melissa served five years in the US Navy as an Air Traffic Controller, becoming fully qualified as a Facility Watch Supervisor being awarded a license with the FAA. 

 

Melissa has lived in Terrebonne Parish since 2013 and has served her community by volunteering as the President for MICS Catholic School and serving on the Board of Directors for Houma-Terrebonne Chamber of Commerce.

 

“We welcome Ms. Adams to our board of directors she will bring a fresh perspective to our board, said Cohen B. Guidry, TEDA CEO. “She will keep us apprised of the ever-changing Industrial / Financial world that she works in every day.”

 

Press Release: TEDA Welcomes Robert "Robbie" Naquin, Jr. to its Board of Directors

Terrebonne Economic Development Authority (TEDA) would like to welcome a new board member,  Mr. Robert “Robbie” Naquin Jr.

 Robbie, with B1Bank, brings to us nearly 20 years of financial experience.

Louisiana State University – Masters of Business Administration / Spring 2005

Concentrations in Finance and Internal Auditing.  Served as MBA Association’s Social Chair. 

Louisiana State University – Bachelor of Science / Spring 2003

Graduated from the E.J. Ourso College of Business with a major in Finance.

Board Service

South Central Industrial Association; Restore or Retreat; Ellendale Country Club; Morganza Action Coalition; Fletcher Technical Community College Foundation; Diocese of Houma-Thibodaux Finance Council; Nicholls State University College of Business Dean’s Advisory Council.

 

“We welcome Mr. Naquin to our board of directors;  he will bring a fresh perspective to our board” said Cohen B. Guidry, TEDA CEO. “He will keep us apprised of the ever-changing financial world that he works in every day.”

Press Release: TEDA Welcomes Joshua Alford to its Board of Directors

Terrebonne Economic Development Authority (TEDA) would like to welcome a new board member,  Mr. Joshua Alford. 

 

Joshua Alford joined Alford & Associates in January 2017 as an Employee Benefits Consultant. After working in other industries, Josh saw an opportunity to change the insurance industry for the better and a profession where he can advocate on behalf of those going through tough life events.

 

Through his experience as a licensed insurance agent and risk manager, Josh strives to hold insurance carriers to account to make good on the promises made to Alford’s clients. He has a passion to provide quality customer service which is rooted in his deep respect for the resilient communities of south Louisiana. Josh prides himself on providing a high value of customer service – bringing along a fresh perspective and innovative ideas to build upon the company’s already strong foundation.

 

Currently, Josh serves on the Louisiana Healthcare Commission where he was appointed by the Insurance Commissioner and confirmed by the Senate. Additionally, he is a member of the Louisiana Insurance Commissioner’s Agent Advisory Board and has previously served as Secretary of the Houma­-Terrebonne Airport Commission and Secretary of the Louisiana Drone Advisory Board.

 

Josh is a 2012 graduate of Vandebilt Catholic High School and a 2016 graduate of The University of Louisiana at Lafayette. He holds a Bachelor of Science degree in Insurance and Risk Management.

 

Cohen B. Guidry, TEDA CEO, said, “We welcome Mr. Alford to our board of directors; he will bring a fresh perspective to our board.   He will keep us apprised of the ever-changing Industrial / Aviation world that he works in every day.”

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