[StBernard] EDITORIAL: Aid for business slow in coming

[Westley Annis]

Periodically, the press office will share editorials about Governor Blanco's
work in various areas.

EDITORIAL: Aid for business slow in coming 


By: The Advocate
Tuesday, November 1, 2005

With every day that goes by, the condition of small businesses in the
hurricane-afflicted regions of Louisiana becomes more difficult.

Help is coming, but slowly. Very slowly.

As predicted by many business insiders, the Small Business Administration
has proved a huge failure in responding to the crisis caused by Hurricanes
Katrina and Rita. Gov. Kathleen Blanco estimated that of 7,000 applications
for SBA loans, at least 600 had been rejected by SBA.

A piddling 68 loans for $6.6 million had been approved as of last week, the
Governor's Office said.

Experts from government and the private sector have deplored this slow pace
of assistance.

Even with large levels of aid, there will be many business failures as a
result of Katrina in particular. The flooding and consequent disruption of
business in the greater New Orleans area is apt to be longer than in most of
southwest Louisiana, where Rita landed.

Members of the Louisiana Recovery Authority appointed by Blanco raised the
problems with SBA at a White House meeting last Tuesday. "Every day without
capital is another day closer to closing these businesses," LRA Director
Andy Kopplin said.

The LRA got commitments that SBA would add staff to speed up processing of
loans, but some members of the authority questioned the effectiveness of
that strategy. Blanco said SBA should work through banks, as the state did
in distributing bridge loans, "bridging" the time between floods and
recovery of business activity.

In just a few days, $1.3 million was lent through the state program to 56
businesses, a stark contrast to SBA's record.

Is that going to be enough?

Not close, although a welcome step, according to President Stephen Moret of
the The Chamber of Greater Baton Rouge. The state program is to spend $10
million in emergency funds obtained by Blanco. Moret said the business
community could use $10 billion in grants to preserve businesses,
particularly those having good prospects once recovery spending begins in
the worst-hit areas.

The much smaller problem of the trade disruption caused in 2001 by terrorist
attacks in New York City resulted in a $1.2 billion grant program for
businesses, and that took six months to get in place, Moret said. The huge
problems caused by Katrina and Rita deserve an unprecedented level of speed
and aid from the federal government, and business is increasingly skeptical
that either can occur.

"Unless you get grant funds down here you're going to have businesses
tanking left and right, and you are going to have significantly higher
unemployment rates for the foreseeable future," said Jeff Finkel, president
of the International Economic Development Association.

Finkel, speaking at a chamber luncheon, said the crisis requires
unprecedented action.

We hope that's coming. The commercial viability of southern Louisiana is
critical to the whole state.


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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