Louisiana governor injects $30M into speedy bridge loan program

New Orleans CityBusiness, Mar 13, 2006 by CityBusiness Staff Report

Gov. Kathleen Babineaux Blanco and the Louisiana Economic Development, the Louisiana Public Facilities Authority and the Louisiana Bankers Association today launched the Louisiana Expanded Bridge Loan Program to provide quick capital for small businesses on the brink post-Katrina.This program expands the Louisiana Bridge Loan project launched in October using the state Rapid Response fund to provide access to capital for small businesses hurt by hurricanes Katrina and Rita.

After providing 407 loans to businesses in 13 parishes, the fund was depleted in three weeks.The state is redirecting $30 million from its Community Development Block grants until additional federal funds are made available. This will allow the program to begin providing immediate assistance to business owners.We are moving forward to help our small business owners still in need of capital and committed to remaining in South Louisiana, said 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 MiKE 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 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 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.