Post-storm grants could boost area small businesses

Small businesses in two Terrebonne Parish communities are eligible to receive federal grant money designated to help keep companies vital to the states economy operating.

Gov. Kathleen Babineaux Blanco, Lt. Gov. Mitch Landrieu, the Louisiana Recovery Authority and the Louisiana Department of Economic Development unveiled a proposal on Dec. 7 that would allot $100 million for small businesses, plundered by hurricanes Katrina or Rita.

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.

“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.”

Before business owners can apply, an amendment must be approved, dubbed the Proposed Action Plan No. 8, which will reallocate $100 million from economic development disaster recovery programs to a small business grant program.

The LRA will make final changes to the action plan on Dec. 14 and present the plan to legislature for a vote. If the amendment passes, HUD will make a final approval before grants can be distributed.

Companies within communities that are eligible and wish to apply for grant money must have no more than 25 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 gre 0ater 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.

“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.

The proposed action plan will continue to help small businesses in addition to $38 million already allocated for no-interest loans.

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