State announces second round of small business loans
BATON ROUGE — A federally backed state program will soon offer a second round of grants and loans totaling $80 million to small businesses recovering from hurricanes Katrina and Rita.
The Louisiana Department of Economic Development and the Louisiana Recovery Authority announced Tuesday that the state will accept applications from June 9 to July 18 for the second phase of the Louisiana Business Recovery Grant and Loan Program, which combines grants and zero-interest loans to qualifying companies with up to 100 employees.
The program is separate from the financing services offered by the Small Business Administration.
"What was being done with the Small Business Administration was helpful but was not sufficient," economic development secretary Stephen Moret said.
Businesses in parishes hit by the storms may use the money for inventory, equipment, working capital or refinancing of storm-related debt. In the first phase, applicants had to show a loss of revenue due to the storm, but the new phase also allows companies to show a loss of assets to qualify.
Other changes have been made to the program based on experience in the first round. For example, the awards will be made in lump sums rather than stretched out.
Each award will be 20 percent grant and 80 percent loan, which after two years begins charging interest at 4 percent. The awards are capped at $100,000.
The first phase distributed $100 million.
Resources for
