The holes look like woodpecker damage, but I've not seen them strip so much bark off of a tree before, not to this extent. Have you noticed any pileated woodpeckers around?

Oooooooh yes. We have LOTS of them. Always have, though. This is the first year one made a nest in my tiki/totem. Woodpeckers do this, even at ground level pulling the bark off?

I've seen the woodpeckers strip small areas of bark off of a tree but not to this extent. It could be a combination between the woodpeckers and squirrels. I'm not an expert on woodpeckers, but I've noticed that sometimes they'll start attacking a tree before it dies. Is it the woodpeckers causing the death of a tree, or is there some type of disease or infestation causing the woodpeckers to attack it relentlessly, that is the question.

Sapsuckers are more likely. They did this to my mother's poplar tree. It's the lines of holes that make me lean their way. The woodpeckers I see tend to be more random. I was assured by an arborist that the sapsuckers do more cosmetic damage than structural. Woodpeckers can do structural damage by repeatedly visiting the same site. But then... woodpeckers are only speeding things up as they're after the insects hiding in the wood. Sapsuckers only peck out shallow holes to release the sap.

From the Purdue University document linked below, "The second most important predator is the bark-eating caterpillar, Indarbela quadrinotata."

This link also addresses the problem and has some recommended solutions:
Bark-eating Caterpillar Affecting Loquat Tree

Good luck with your beautiful tree! I hope you can get those pests under control.
Carol in Jacksonville

Here is a link that might be useful: Loquat - Purdue University

Verrrrrrrry similar situation posted in 2010 but left unresolved.

Carol

Here is a link that might be useful: Trees Forum - Trunk & branch damage on loquat tree

I agree with Leekle.......a sapsucker.

Bamboo, I think both are at work here: bark-eating caterpillars and sapsuckers. There is evidence of both.

Carol

Carol,

That is true, the first two pictures sure don't look like the sapsuckers, just the third.

I appreciate everyone's help. I've done some further online investigation and it seems all is likely lost. I didn't mention in my OP that I've lost two Loquat trees (maybe 3?) over the past 2-3 years from "unknown causes." I never saw this bark damage before, but I've seen the uniform holes. In my experience thus far, they're going to drop like flies. I went out and looked, all 7 of the remaining trees have the same or similar damage. That's a lot of sapsuckers and woodpeckers and whateverall. Huff.