[StBernard] Governor Blanco announces expanded bridge loan program

[Westley Annis]

Governor Blanco announces expanded bridge loan program $30 million from
Community Development Block Grants will provide fast access to interest-free
capital for small business 

Baton Rouge, LA - Governor Kathleen Babineaux Blanco and officials from
Louisiana Economic Development (LED), the Louisiana Public Facilities
Authority (LPFA) and the Louisiana Bankers Association (LBA) today announced
the launch of the Louisiana Expanded Bridge Loan Program. The program will
provide much needed access to capital for small businesses still waiting for
government assistance, insurance funds or other programs that are expected
to provide a source for repayment of these loans. 

This program is an expansion of the Louisiana Bridge Loan program, launched
in October utilizing the state's $10 Rapid Response fund to provide access
to capital for small businesses impacted by Hurricanes Katrina and/or Rita.
After providing 407 loans to businesses in the 13 most heavily impacted
parishes, the fund was depleted in just three weeks. 

Under Governor Blanco's direction, the state is redirecting $30 million from
its existing Community Development Block Grant funds until additional
federal funds are made available. This will allow the program to begin
providing immediate assistance to business owners who need it. 

"We are moving forward to help our small business owners still in need of
capital and committed to remaining in South Louisiana," said Governor
Blanco. "By expanding the successful program initiated with the Rapid
Response Fund, we are continuing to put cash into the hands of businesses
working toward recovery."

"The success of the initial program demonstrates both the need for funds and
the effectiveness and efficiency of the application and loan-granting
process. Six months after the storm, over 18,000 businesses have shut their
doors. We must continue to provide assistance to small business owners
trying to meet payroll, repair equipment or find other ways to restart their
operations," said LED Secretary Michael J. Olivier. "The public-private
partnership between the state, LPFA and LBA is putting federal dollars to
work for Louisiana's small business owners." 

Under the expanded program, loans are still interest-free for up to 180
days; maximum loan amount has increased from $25,000 to $100,000 per
qualified business and the number of qualifying parishes has increased from
13 to 37. Through participating private sector financial institutions, funds
will be available within 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. 

The application and program information are available at
LouisianaForward.com, LPFA.com, and at participating financial institutions.
Applications should be completed and submitted in-person at one of the
participating financial institutions.

"Our partner financial institutions are providing a critical service to
small 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 LouisianaForward.com or lpfa.com. 

Additional Media Contacts:
Lana Sonnier, 225.342.5406, sonnier at la.gov Amy Ferguson, 504.891.9343,
amyferg at bellsouth.net

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