$2M federal loans available for restaurants and farmers hurt by crawfish's awful year
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Farmer Chad Hanks walks by dry, cracked earth on his farm where he usually grows crawfish on Oct. 10, 2023, in Kaplan. Photo: Justin Sullivan/Getty Images
Louisiana's crawfish industry is feeling the pinch after months of drought, extreme heat and then a deep freeze.
Why it matters: The crawfish industry contributes more than $300 million to the state's economy annually.
- "When people are making money, they are spending money," Democratic Congressman Troy Carter tells Axios.
The big picture: The Small Business Administration is offering businesses up to $2 million in low-interest loans to help make ends meet.
- They are available to anyone who touches the crawfish from the water to the point of sale, Carter says. That includes restaurants, grocery stores, farmers and corner stores.
- Carter is helping coordinate workshops this week across south Louisiana to help businesses fill out the loan paperwork.
By the numbers: Louisiana is the country's No. 1 crawfish producer, according to the state Department of Wildlife and Fisheries.
- It has 1,000+ crawfish fishermen, 1,300+ crawfish farmers and thousands of businesses that boil and serve crawdads.
Catch up quick: 2023 was one of New Orleans' driest years in nearly eight decades, according to the National Weather Service.
- Louisiana also had its hottest summer on record, and several cities, including New Orleans, broke their daily heat records.
- The weather dried out the soil where crawfish burrow, potentially killing them, the AP reports.
Threat level: LSU AgCenter's preliminary estimates say the potential losses to the state's crawfish industry could be nearly $140 million.
Meanwhile, it's also making crawfish more expensive and harder to find for consumers.
- Boiled crawfish ranges between $6-9 per pound in New Orleans metro, according to WGNO's crawfish price tracker. Earlier this year, it was about $13 per pound.
State of play: Gov. Jeff Landry issued a disaster declaration for the crawfish industry on March 6.
- "The crawfish industry needs all the support it can get right now," his statement said, adding that the drought was affecting "our way of life."
- The declaration unlocks federal help for businesses.
How it works: Businesses need to show economic injury in order to qualify for a loan, SBA spokesman Susheel Kumar tells Axios.
- There's an event Tuesday in Reserve, Wednesday in New Orleans and Thursday in Baton Rouge where people can meet with SBA staffers to answer questions. (Details)
- Business owners need to bring a valid ID, at least two years of tax returns and any other financial documents that show economic harm.
- The money can be used to pay normal operating expenses such as fixed debts, payroll and accounts payable, Kumar says.
Zoom in: The interest rate is 4% for small businesses and 2.375% for nonprofits on the 30-year loans, SBA says.
What's next: Apply online for a federal loan. For more help, call (800) 659-2955 or email [email protected].
- The deadline is Dec. 23.
Lagniappe: Carter says his favorite place for boiled crawfish in metro New Orleans is Perino's Boiling Pot in Harvey.
Go deeper: 7 New Orleans-area restaurants boiling crawfish.
