[StBernard] Business Recovery Grant and Loan Program approves $62.7 million in grants to small businesses impact

[Westley Annis]

Business Recovery Grant and Loan Program approves $62.7 million in grants to small businesses impacted by hurricanes; More than 3,400 businesses to receive grants

BATON ROUGE - The Office of Governor Kathleen Babineaux Blanco today began mailing more than 3,400 grant award acceptance letters for the Business Recovery Grant and Loan Program. 

"My Business Recovery Grant and Loan Program is designed to get much-needed cash into the hands of the thousands of small businesses still working hard to recover from Hurricanes Katrina and Rita. Most of these businesses have fewer than 10 employees and are located in the hardest hit areas of the state. These small businesses are the backbone of our economy, and are struggling to keep their doors open. We heard their stories, and have carefully crafted this innovative program to not only help individual businesses, but to also spur economic growth in these communities," said Governor Blanco. 

Businesses with fewer than 10 employees make up 88 percent of the recipients. Grants went to businesses across the southern part of the state, from Plaquemines to Cameron, and just over half were minority or women-owned. The average grant size was $18,100. Click here to view the grant disbursement fact sheet. <http://www.louisianaforward.com/uploads/pdf/BRGL_Phase1_Results.pdf>  

Next week Gov. Blanco will personally visit businesses approved for grant awards, walking them through the acceptance process. Grant recipients are asked to sign and return the acceptance letter outlining terms and conditions for the grants as soon as possible. A stamped, addressed envelope will be included to expedite this process. Upon receipt of the signed acceptance letter, the issuing community-based financial institution will process and mail the award checks.

"It's a sad fact that many of our small businesses are hanging on by a thread," said Louisiana Recovery Authority (LRA) Economic and Workforce Development Chairman Matt Stuller. "We've heard this from the business owners and seen it with our own eyes. It's not enough money to get us back where we were - we know that. But I hope this will give them the boost they need to keep their doors open and relieve some immediate burdens they've struggled with for far too long."

Following Governor Blanco's recommendation, the LRA board recently approved $68 million in funding in addition to the original $138 million allocated for the Business Recovery Grant and Loan Program. The funds will enable the State to provide a second round of grants and loans to small businesses impacted by the hurricanes. This request must be approved by the Legislature and the Department of Housing and Urban Development. 

"These additional funds validate the success of this program," said Michael Hecht, director of business recovery for Louisiana Economic Development. "The second round of grants and loans will have broader eligibility requirements, allowing additional worthy businesses to qualify beyond this pilot phase of the program."

Nearly 5,600 businesses applied for grants through the program, designed to help small businesses in South Louisiana that continue to feel the impact of hurricanes Katrina and Rita. 

Letters to businesses who did not meet eligibility requirements will be mailed beginning Monday. Businesses that submitted complete applications but were not approved for the initial grant phase will be automatically submitted for consideration for the next phase of the program, expected to begin in the coming months. 

With grant letters going out the doors, the seven non-profit community financial institutions processing applications will now begin to schedule closing for the zero percent interest loans that are also part of the program. To date, more than 1,000 applications for loans have been received.

For updates on the Business Recovery Grant and Loan Program, sign up for LED's BusinessWire at LouisianaForward.com. <http://keelson.eatel.net/websites/la.gov/action.cfm?md=communication&task=addClick&msg_ID=3607&ID=d%3Ei%7Beri%2An%21nL&redirect=http://www.louisianaforward.com/> 

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The Louisiana Disaster Recovery Foundation
Louisiana's Fund for Louisiana's People
www.louisianahelp.org