INITIATIVES

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BUSINESS RECOVERY INITIATIVES

The Business Recovery Initiatives provide financial relief to restart and sustain small and independent businesses in the areas of Louisiana impacted by hurricanes Katrina and Rita. These initiatives include Technical Assistance, and No-Interest Loans and Grants. Collectively, these programs provide a range of much-needed assistance to small businesses struggling to rebound. The financial relief, grants and no-interest loans, is particularly geared to businesses experiencing depressed revenues since the storms.

The Acadiana Regional Development District is an intake and assistance center to accept grant and loan applications in person and by appointment only and provide technical assistance.

Businesses in the parishes affected by Hurricanes Katrina and Rita are eligible to apply for Business Recovery Grant and Loans allocated by the State of Louisiana. Eligible parishes are: Acadia, Allen, Beauregard, Calcasieu, Cameron, Iberia, Jefferson, Jefferson Davis, Lafouche, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, and Washington.

Business Recovery Loan and Grant -- PHASE II

The Louisiana Business Recovery Grant and Loan Program – Phase II is a continuation of the Louisiana Business Recovery Grant and Loan Program. Phase II includes funding for approximately $80 million in awards.

The application period for Phase II of the Business Recovery Grant and Loan Program ended July 18, 2008.

Program Overview

• All award applicants must meet the general eligibility requirements and fulfill basic underwriting criteria to qualify. In the case of more eligible awardees than available funding, award applicants that meet all criteria will be prioritized according to the US Department of Commerce Bureau of Economic Analysis Regional Economic Indicators, according to their industry code (NAICS).
• Awards will consist of 20% grant/80% loan packages ranging from $20,000 to $100,000. In limited cases, subject to LED/LRA approval, loan amounts may be increased to $230,000.
• Loans have 0% interest for the first two years and a 4% rate thereafter.
• No principal repayment is due for the first six months. Principal is fully amortized over three to seven years, as determined by the intermediary.
• There are no fees.
• A personal guarantee is required on all business owners ≥20%.
• Businesses that received a grant in Phase I are eligible for a loan-only in Phase II (but the 20% grant portion of award will not be given).
• Acceptable Uses of Funds
  • business inventory
  • equipment
  • operating expenses (rent, insurance, utilities, etc.)
  • refinancing of storm-related business debt
• Ineligible Uses of Funds
  • acquisition of real estate
  • construction
  • refinancing of State Bridge Loans
  • tax arrearages
  • governmental fines or penalties
  • political or religious activities
  • buying out any stockholder or equity holder in a business
  • investment for interest purposes only

For an online application, visit www.louisianaforward.com or click here>>

Eligibility Requirements

To be eligible for the benefits of the Louisiana Business Recovery Grant and Loan (BRGL) Phase II, a business must meet ALL of the following criteria:

1. Physically located in any of the following parishes (pre-storm):
   • Cameron, Orleans, Plaquemines or St. Bernard, Calcasieu, Jefferson, St. Tammany, Vermilion, Acadia, Allen, Beauregard, Iberia, Jefferson Davis, Lafourche, St. Charles, St. John the Baptist, St. Mary, Tangipahoa, Terrebonne or Washington
2. Physically located in any of the following parishes (post-storm):
   • Cameron, Orleans, Plaquemines or St. Bernard, Calcasieu, Jefferson, St. Tammany, Vermilion, Acadia, Allen, Beauregard, Iberia, Jefferson Davis, Lafourche, St. Charles, St. John the Baptist, St. Mary, Tangipahoa, Terrebonne or Washington
3. Legally in business prior to the storms
4. No more than 100 full-time (35 hours / week) employees (pre-storm)
5. Minimum $25,000 annual gross revenue (pre-storm)
6. At least one of the following:
   • Experienced a 20% decline in annual gross revenue from 2004 to 2006
   • Experienced a storm-related physical loss of $20,000 or more
7. Currently open

Proof of eligbility must be submitted with your application. To download a list of acceptable documentation (PDF format), click here>>

Note: The award for BRGL Phase II is a 20% grant / 80% loan package. A business that meets the above basic eligibility requirements will not necessarily receive a grant/loan package, due to loan underwriting requirements and potential for more eligible awardees than available funds.

Technical Assistance

ARDD provides technical assistance, training, and ongoing assistance to small businesses located in the parishes impacted by Hurricanes Katrina and Rita.

Types of assistance include

• basic business services (business plan development, accounting and/or financial projections, legal services, inventory management and marketing assessment)
• advanced business services (strategic planning, client case management, environmental issues, government procurement, bid preparation/pricing, marketing material/website design, import/export technology, research/development, etc.)
• finance (financial projections, cash flow management, business finance restructuring, loan application preparation), and
• entrepreneurship (entrepreneurial training, counseling, micro-enterprise development).