[StBernard] News You Can Use - 11/12/05

[Westley Annis]

November 12, 2005

 


SBA Loans available on a streamlined basis    


 

If you are a business owner and have not yet completed a SBA loan
application for a disaster loan, you need to do get that process started
right away.  My recommendation is that you do not do this on your own, but
instead visit someone with the SBA in person. You can find them at any of
several Disaster Recovery Centers in the area.  The DRC in St. Bernard is
located in front of the Super WalMart.

 

Once your application leaves the SBA desk at the DRC, it's sent to be
processed in Dallas.  However, before the paperwork is forwarded to the
underwriting department, the SBA Dallas office checks it for completeness,
etc.  This takes time.

 

In order to avoid this delay, you can go an SBA Business Assistance Center.
There's a huge difference between going to a DRC and a Business Assistance
Center.  The primary difference is that forms that are processed through the
Business Assistance Center are put to the head of the line in the Dallas
location.  You don't jump ahead of everybody else in line who has already
been screened for completeness, but you are sent directly to the
underwriting department.  This is because Dallas knows that forms completed
at the Business Assistance Center are complete.   

 

Go here  http://www.sba.gov/disasterarea3/SBA_LA_OFC.pdf  to search for a
Business Assistance Center in your area.  There's one located at Canal
Place, and one each on the east and west bank of Jefferson Parish.

 

The above instructions are for those who need to apply for SBA Loans under
the Disaster Loan Program.

 

New SBA Program 

 

SBA has just announced another loan program, called the Gulf Opportunity
Pilot Loan Program, which they refer to as GO Loans.

 

GO loans are very different from Disaster Loans in that the GO loans are
underwritten by the local banks.  The bank handles the paperwork,
underwrites and issues the loans.  GO loans can be for up to $150,000 and
can be for as long as 25 years.  The interest rate will be set by your bank.


 

The SBA guarantees 85% the loan amount for the bank.   This guarantee may
mean that the banks are going to be more lenient on who can get a loan,
knowing that if you default, the SBA will pay back up to 85% of the loan
amount.

 

The bank uses their own paperwork, etc, and electronically submits the loan
to the SBA to get their guarantee.  The goal is to have this guarantee sent
out within 24 hours.  Once this is done, the bank releases the funds to you.


 

This is a very different program than the Disaster Loan program. The
underwriting is handled locally by someone who (hopefully) understands you
and your business.  To a local banker, you're not just a number, but a
person of their community who they know and love.  In addition, the
processing should be much quicker since the bank, and not some overburdened
office in Dallas, is handling the paperwork.  Finally, the checks are cut
right at the bank, and not from the Treasury.  Treasury checks take time to
get sent out and are prone to being snagged in the Katrina affected mail
service.  Local checks are handed over.

 

GO loans are independent of any other "pre-Katrina" SBA loans you may have.
I understand that in light of the effects Katrina has had on our businesses,
the SBA may allow for rather generous deferments on paying back
"pre-Katrina" SBA loans.  

 

Check out the GO loan program and how it relates to the other SBA loan
programs with your banker.  

 


Safe Deposit Boxes


 

I attended a meeting Thursday where bankers were present from 4 out of the 5
major banks in St. Bernard.  Here's what they had to say regarding the Safe
Deposit Boxes you may have had at any of their locations.

 


Whitney National Bank


 

has moved all of the safe deposit boxes in St. Bernard and other affected
areas to their main office at 228 St. Charles Ave in New Orleans.  You can
go here  

 

https://secure.whitneybank.com/whitneyapps/personalbanking/misc/safeboxappoi
ntment.aspcomplete 

 

and request an appointment to get into your bank box or you can request this
appointment at any of their locations that are currently operational.

 

Whitney has said they will be re-opening their branch in St. Bernard.

 


Regions Bank


 

is working on opening their branch on Paris Road in St. Bernard.  At the
time of the meeting, they were awaiting delivery of a trailer to be used as
their office.

 

The safe deposit boxes from their affected Louisiana branches have been
moved to a secure warehouse located at 8018 Belle Chasse Highway.  You have
to have an appointment with them to access the boxes contents.  Call 504 394
7290 for your appointment. They're open Monday thru Friday, 9 am till 4 pm.

 

All safe deposit boxes located in the Long Beach, Gulfport-14th Street and
Biloxi Lameuse branches in Mississippi have been relocated to a temporary
location next to the Edgewater Branch in Biloxi. All Bay St. Louis customers
should call the Regions Picayune Branch at 601-798-4877 to speak with Branch
Sales Manager Shane Fitzgerald to make an appointment to access their safe
deposit boxes.

 

Chase Bank (formerly Bank One)

 

The safe deposit boxes at the 12 branches closed by Katrina have been
relocated to the Chase Recovery Center at 5401 Jefferson Highway in Harahan.
You can access your box and retrieve its contents here.  You need an
appointment to do get in. Call 1-877-Chase05 between 9 am and 4pm Monday
thru Friday to set something up.

 

Chase is working on re-establishing their presence in St. Bernard

 

Gulf Coast Bank

 

Gus Reiss and his associates at the Gulf Coast Bank are up and running in
St. Bernard.  They've consolidated their St. Bernard offices into a bank
trailer located behind their permanent office on Judge Perez Drive, across
the street from the Government Complex.  They will have access to their bank
boxes on Saturday December 10th from 9 am till noon.  At that time, they
will allow you to access your box and retrieve it's contents.  

 

 

 

St. Bernard Chamber Grants Available

 

If your business was located in St. Bernard Parish prior to Katrina and you
were a member of the St. Bernard Chamber of Commerce, you may be eligible
for a $15,000 grant from that organization.

 

In order to receive the grant, you must affirm your intent to relocate in
St. Bernard Parish.  Upon acceptance of the grant check, you must sign a
statement affirming that if you cannot open your business within one year
from the check date, you will return the money to the Chamber.  Applications
must be received by January 15, 2006.    


This program is only for businesses that were members of the St. Bernard
Chamber as of August 29, 2005.   If you're interested, please contact Amy
Ybarzabal at the Chamber at 504-250-6121.  Applications should be mailed to:

St. Bernard Chamber
P.O. Box   2204 
Mandeville, LA  70470

 

 

 

FEMA Trailers 

 

To clarify a common question, please note having an employee housed in a
FEMA trailer for your business does not disqualify them from receiving a
FEMA trailer personally.   There's been plenty of confusion on this
question.

 


Finally, a small commercial


 

Are you wondering what to do when you receive your check in settlement of
your insurance policies?   

 

For many, these checks will total over $100,000.  These funds need to be
placed somewhere safe, so they are available to you when you need them to
rebuild your house, or purchase another property. Do not be tempted to have
someone "put these funds to work for you in the market."

 

Many of you know that professionally, I am a Certified Financial Planner
professional.  If you would like to receive information on a federally
insured savings account paying very attractive rates on money held until it
will be used to rebuild, please give me a call or reply to this e mail.
This account has no fees or minimums and is insured by the FDIC.  I'd be
happy to tell you about it and give you the details.

 

DISCLAIMER:  This e mail is intended to help those of us who have been
impacted by Hurricane Katrina.  It may contain information that is somewhat
legal  in nature or affect your taxes.

 

References to legal or tax considerations are intended only to alert you in
a general way of those considerations which may effect you.  We do not
engage in the practice of law.   All legal considerations must be referred
to and passed upon by your attorney.  All tax considerations should be
reviewed by your tax preparer.

 

Paul V. Perez
Certified Financial Planner
 
Financial Network Investment Corporation, Member SIPC
7642 Old Hammond Highway
Baton Rouge, LA  70809
(504) 494 3144
(225) 248 6635
(225) 208 1885 (fax)