Lawmakers OK SBA grant funds

Small businesses in two Terrebonne Parish communities are eligible to receive federal funds after lawmakers approved a loan and grant program, designated to help keep companies vital to the states economy operating.

Gov. Kathleen Blanco and the Louisiana Recovery Authority pushed the $143 million program for small businesses that were plundered by hurricanes Katrina or Rita.

Lawmakers approved the funding package during the state’s 10-day special session, which ended Friday. The Louisiana Department of Economic Development will head the program.

To be considered for an award, businesses must reside in areas of eligibility n parishes with 20 percent calculated damage or higher. Other areas that received substantial damage have been considered including Montegut and Chauvin of Terrebonne Parish.

The money can be used to make repairs, restart small business or provide a leg-up until customers recover and begin spending money. Initially the program focused on helping small business owners in the tourism industry who were hurting from low profits after the storms.

Now the program covers various industries that preserve Louisiana culture and way of life.

Of the total award program, $100 million will be available for grants up to $20,000 and $38,000 will be set aside for interest-free loans, up to $250,000 per business. About $5 million will go toward administrative fees.

“The recovery of small businesses must be in lock step with the rest of our rebuilding effort,” said LRA Economic and Workforce Development Task Force Chairman Matt Stuller. “Their ability to succeed is a critical piece of this puzzle. That is exactly why we developed this program n to keep people in business and help others open their doors again. Our merchants, fishermen, restaurateurs and artists are counting on us.”

Although the lawmakers approved the amendment, dubbed the Proposed Action Plan No. 8, which will reallocate $100 million from economic development disaster recovery programs to the small business grant program, full legislature approval is needed by mail ballot before grants or loans can be awarded.

HUD will make a final approval before distribution.

Companies within communities that are eligible and wish to apply for grant money must have no more than 50 employees, have been open six months prior to hurricanes Katrina or Rita, and have reopened or clearly demonstrate the potential to resurrect business.

Businesses must be located designated communities, that sustained 20 percent damage or greater as well as document tangible losses of more than $10,000 or show greater than 30 percent decline in revenue compared to the same quarter before the storms.

Parishes meeting damage rate criteria are St. Bernard, Plaquemines, Orleans, and Cameron. Other communities that are also available are Chauvin and Montegut of Terrebonne Parish, receiving 40 percent and 34 percent damage, respectively.

Grant money can be used to pay for rent, insurance, utility payments and equipment. Operating expenses and building repairs can be funded by loans.

“Finally we have some relief for our small businesses that are the backbone of our country and our state,” said Laura Drumm, president of Second Wind NOLA.

Second Wind is a non-profit organization, comprised of small businesses with one common goal n to obtain funding and other forms of assistance by pushing for additional small business grant programs and lobbying for FEMA improvements.

Over 1,000 members strong, Second Wind also provides networking systems, forums and support for small business owners.

“On behalf of our members we thank the Governor, the LRA and LED for recognizing the importance of small business and addressing our needs through this program,” Drumm said.

For more information on the grant program visit www.lra.louisiana.gov or call (225) 342-1700.