SBA declares emergency to give crawfish industry access to loans

Louisiana crawfish farmers who are struggling through a depleted harvest this year will be able to borrow money from the federal government at low interest rates to make ends meet.

The Small Business Administration announced Thursday it had declared a disaster for the state’s crawfish industry. 

Affected businesses and individuals now have access to the SBA’s Economic Injury Disaster Loan (EIDL) program. It provides up to $2 million per application to help recipients meet financial obligations and operating expenses the disaster has prevented them fulfilling. The money can be used for working capital and normal expenses such as covering the cost of health care benefits, rent, utilities and regular debt payments.

The first payment on an EIDL loan will be deferred for 12 months, during which no interest accrues on the money borrowed. The interest rate of the loan will not exceed 4%, and there is no penalty if a borrower wants to pay off the loan early. Repayment terms can extend to 30 years.

The process to apply for an EIDL can be accessed here.

“The SBA’s mission-driven team stands ready to help Louisiana small businesses affected by the drought and resulting crawfish shortage,” SBA leader Isabella Casillas Guzman said in a statement. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities weather this environmental and economic challenge.”

Louisiana U.S. Reps. Troy Carter, Garret Graves, Clay Higgins and Steve Scalise pushed for the federal agency to extend help to crawfish farmers, wholesalers and process. Gov. Jeff Landry declared a statewide emergency for the industry, the first step toward connecting its members with assistance from Washington.

“Agricultural businesses and industries have suffered detrimental economic impacts from the drought, saltwater intrusion and high temperatures,” Landry said in a statement. “With today’s federal disaster declaration approval, Louisiana’s crawfish businesses, industries, and farmers will receive the economic relief they need.”