New Orleans Businesses Struggle Through Katrina, Covid, and Ida
Sixty-eight-year-old plumber and Wayne Jude Encalarde Plumbing and Public Works owner, Encalarde, shared that Hurricane Katrina wasn't just a storm. It destroyed more than just his vehicles and tools, affecting the longevity of his business and leading him to lose many of his clients.
Encalarde had just begun to regain momentum when Hurricane Ida hit. "My business was just starting to make a profit," Encalade shared with CNN Business. "I was just getting things together."
New Orleans business owners like Encalarde are saying that Hurricane Ida might be the nail in the coffin for their businesses. Ida killed at least 13 and left hundreds of thousands without power, plunging the city into crisis.
Insured individuals might have to wait weeks, if not months, to receive insurance claims, said Kelisha Garrett, CEO of the Louisiana Chamber of Commerce Foundation, which supports minority businesses and stimulates economic growth in the state.
Encalade shared that he and his eight employees would start on public works projects for the city next week, but the Hurricane posed a significant threat to these potential job openings and livelihoods.
"I'm back at work next week, but I'm not sure if it's going to happen," Encalade said. "My next four projects all have to go through city hall, so it depends on how quickly the city gets back up and running."
Ada Brings the New Coronavirus Wave
Garrett shared that most of the business owners she works with were still struggling with the aftermath of Covid-19 and the Delta variant when Ada arrived. "Many people run their businesses from home, but they're also among the millions of city residents who lost power," Garrett shared with CNN Business last week. "We've given up whatever little we had, and nature has taken it away from us."
Garrett shared that minority-owned businesses were forced to turn to the government for solutions during the crisis, just as they did following Hurricane Katrina and the Covid-19 pandemic in 2020. They and other business leaders claim that quick provision of federal funds and inclusion of local small businesses in infrastructure rebuilding projects can help New Orleans' economy recover from IDA and the pandemic.
"We want jobs. We have people who want jobs," said Tina Balthazar, owner of Balthazar Electriks in New Orleans. "I just need projects and funding to make it happen."
The 58-year-old Louisiana-born Balthazar had evacuated New Orleans before Ada and spent the past week bringing her home-based business back online in her second home in Mercerville, New Jersey.
Balthazar shared that, as her business now has no income, she was unsure how she would continue to pay employees' wages without government assistance in the near future.
"I can't afford to give my business a blank check to keep it running," she said. "I hope everyone, including government agencies and businesses, realizes that we're here."
"We can make a very positive contribution to recovery efforts and the economy as a whole, but we need opportunities," Balthazar added.
Enrichment Insights
The federal government encourages IDA-affected small business owners to apply for assistance from the U.S. Small Business Administration (SBA). Business owners can call 1-800-659-2955 or email to apply or get more information. Most businesses that apply are eligible for a low-interest loan of up to $2 million to cover physical damages or interruptions to working capital[4].
By the end of the previous week, the SBA had approved 125 disaster loans worth more than $4.5 million for IDA relief.[4]
However, some businesses may need some time to decide whether they need a loan, said Alejandro Contreras, Director for Preparedness, Communication, and Coordination at the SBA Office of Disaster Assistance. He encouraged businesses to accept the funding if they need it, and not to wait until they receive it.
"If you're wondering if you need a loan, you might want to consider it," Contreras said on Sunday. "Don't wait until you get it."
Contreras also shared that the Biden administration is working to ensure that minority businesses have a fair chance to secure infrastructure contracts for the city's rebuilding efforts.
"The Biden administration has placed a high priority on improving fairness in the recovery plan," Contreras said. "From the beginning, we've heard that a fair recovery is a priority. Progress is being made."
Related Reading
As New Orleans businesses struggle to recover from Hurricane Katrina, Covid-19, and now Ida, the possibility of long-term business survival hangs in the balance.
