Louisiana crawfish industry gets federal U.S. disaster assistance, help to rebound after drought

Tyler Eschette
·2 min read

BATON ROUGE, La. (BRPROUD) — The U.S. Small Business Administration announced Thursday they will offer low-interest federal disaster loans for small businesses that were economically impacted by the severe or extreme drought.

According to an SBA news release, “Approximately 365,000 crawfish acres across Louisiana have been affected by the conditions of saltwater intrusion, drought, and high temperatures.”

This move will help crawfish harvesters and other people who work in aquaculture.

“Crawfish aquaculture is more than just a product in Louisiana; it’s a way of life. Generations of farmers have dedicated themselves to this time-honored tradition, and recent climate events have resulted in financial setbacks and dealt a blow to the cultural fabric of our state,” said U.S. Rep. Troy A. Carter Sr. (D-La.) “The crawfish industry is intertwined with our identity, and its preservation is crucial. These federal resources will help Louisianians recover their financial losses.”

Eligibility to get Economic Injury Disaster Loans is “based on the financial impact of the disaster only and not on any actual property damage.”

For small business loans, interest rates are 2.375% and 4% for private nonprofit organizations. The news release said terms are “up to 30 years and are restricted to small businesses without the financial liability to offset the adverse impact without hardship.”

Congressman partners with SBA to host workshops for Louisiana crawfish farmers

Interest will not begin for up to 12 months “from the date of the first disaster loan disbursement,” according to the news release. SBA disaster loan repayment will begin “12 months from the date of the first disbursement.”

SBA declared a disaster declaration after getting a request from Gov. Jeff Landry on Tuesday, March 19.

“Agricultural businesses and industries have suffered detrimental economic impacts from the drought, saltwater intrusion, and high temperatures. With today’s federal disaster declaration approval, Louisiana’s crawfish businesses, industries, and farmers will receive the economic relief they need. I appreciate the support of the Louisiana delegation in this important matter, especially Representatives Carter, Higgins and Scalise,” said Landry.

The disaster declaration makes SBA assistance obtainable across all 64 parishes in Louisiana and some counties in Arkansas, Mississippi and Texas.

“This declaration offers much-needed assistance to small businesses engaged in aquaculture such as those who rely on the crawfish season,” said Francisco Sanchez Jr., associate administration for the Office of Disaster Recovery and Resilience at the SBA. “Small nonfarm businesses and small agricultural cooperatives of any size may also qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the drought not occurred.”

Applicants can apply online or by contacting SBA’s Customer Service Center at 800-659-2955.

The deadline to apply for economic injury is Monday, Dec. 23.

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