HUD No. 07-014
February 09, 2007
HUD APPROVES LOUISIANA PLAN TO BOOST FUNDING TO SMALL BUSINESS RECOVERY PROGRAM
Additional $105 million to benefit businesses with fewer than 50 workers
WASHINGTON - U.S. Housing and Urban Development Secretary Alphonso Jackson today approved Louisiana"s request for an additional $105 million to further assist small businesses in the States" southern parishes to recover from Hurricanes Katrina and Rita. Last September, Jackson approved Louisiana"s initial $38 million Small Firm Loan and Grant Program. With today"s approval, the program will expand to offer a total of $143 million in grants and loans to small business owners who employ up to 50 employees.
"By growing this program, Louisiana will be able to help more small businesses to recover and that means more jobs for families working to put their lives back together in the aftermath of these storms," said Jackson. "State leaders found that their small business community needs additional help and we have approved the use of additional federal recovery dollars for this purpose."
Louisiana originally committed $38 million to provide grants and low-interest loans to small businesses with fewer than 25 employees. In amending its plan, the Louisiana Recovery Authority (LRA) asked HUD to consider expanding eligibility to small businesses with up to 50 employees.
In addition, grants and loans may be offered to smaller businesses with more than 50 employees under special circumstances on a case-by-case basis. To fund this expansion of the Small Firm Loan and Grant Program, HUD approved Louisiana"s request to redirect up to $78 million from the State"s Bridge Loan Program and up to $27 million from Louisiana"s Long Term Recovery Loan Guarantee Program.
Louisiana"s Small Firm Recovery Loan and Grant Program will provide grants to small companies located in southern parishes that are deemed to have a chance to continue to operate, to contribute to the local economy and to maintain and create jobs. This program will also offer low-cost loans with flexible terms to firms that may not qualify for or have not received bank and/or Small Business Administration (SBA) loans.