[StBernard] Louisiana launches hurricane bridge loan program

[Westley Annis]

Louisiana launches hurricane bridge loan program 

Governor Blanco announces $10 million to fund interest-free business loans 

October 17, 2005 - Baton Rouge, LA - Governor Kathleen Babineaux Blanco and
officials from Louisiana Economic Development (LED) and the Louisiana Public
Facilities Authority (LPFA) today launched the Louisiana Bridge Loan
Program. The program will provide "gap funding" for businesses waiting for
government assistance, insurance funds or other programs that are expected
to provide a source for repayment of these loans. 

The program will be administered by LED through a number of Louisiana-based
financial institutions. Under Governor Blanco's direction, the state's $10
million Rapid Response Fund has been reallocated to act as seed funding for
the initial round of loans. The state has also requested an additional $200
million from Congress to continue the bridge loan program. 

"We are moving quickly to help businesses in critical need of capital. This
will help businesses that are already approved for funds, but are
desperately waiting for the red tape to clear and the funds to be
transferred into their accounts," said Governor Blanco. "By working with the
private sector we have crafted a plan that will put cash into the hands of
business owners who need it. This program is a valuable first step and a
joint public-private sector model for future aid programs." 

"It is important that we provide leadership and direction at a state level
by immediately making assistance available to business owners trying to meet
payroll, repair equipment or find other ways to restart their operations,"
said LED Secretary Michael J. Olivier. "By partnering with the private
sector we can more quickly and efficiently put Louisiana dollars to work for
Louisiana business owners." 

Louisiana Bridge Loans are interest-free for up to 180 days. Through private
sector financial institutions, funds will be available within three to five
days of application by eligible businesses. Eligible businesses are those
located in the regions directly affected by hurricanes Katrina and/or Rita,
have been in business for at least one year and maintain an acceptable
credit rating. 

"Every day, every hour that we do not have the funds to reach out and give
employees a reason to return they are making new lives somewhere else," said
New Orleans-based Hubig's Pies owner Drew Ramsey. "We need the funds now to
get them and us back to work." 

 "Everyone is talking about the federal assistance coming.  But I cannot pay
bills with that and haven't had revenue since Katrina," said Lawrence
Morrow, owner of Gumbeaux Magazine of Lake Charles. "This bridge loan is the
life line we need to get back up-and-running now."  

The two page application and program information is available at
LEDforward.louisiana.gov and at participating financial institutions.
Applications should be completed and submitted in-person at one of the 15
participating financial institutions. 

"Our partner financial institutions are providing a critical service to
businesses within their own communities," said James W. Parks, Louisiana
Public Facilities Authority President and CEO. "Every bank has made the
commitment to review and approve eligible businesses within five days so
these funds can immediately put Louisiana businesses back to work. It is
vital that we make these loans available." 

For more information, visit LEDforward.louisiana.gov or lpfa.com . 

### 

The Louisiana Disaster Recovery Foundation (LDRF), Louisiana's fund for
Louisiana's people, has been established by Governor Kathleen Babineaux
Blanco in order to support long-term family restoration and recovery and
help provide assistance to our citizens in need through a network of
Louisiana charities and non-profit agencies. 

1-877-HELPLA1 (877-435-7521) www.louisianahelp.org