Louisiana business loan

Louisiana Loan program in place for small businesses affected by 2016 floods

Whenever a business owner decides to go into business there are certain risks that are associated with that decision. Like all risks, there are some catastrophic risks that are involved as well. This is particularly true for those business owners who were located in the Louisiana area and were affected by the March or August 2016 floods.

It has been reported that the floods were responsible for shutting down well over 7,000 locally owned businesses in the area. An assessment of the aftermath was performed by U.S. Army Lt. Gen. Russel Honore (Ret.), who was also the Joint Katrina Task Force commander who took an interest in addressing the impact of these floods that took place in Southern Louisiana as well.

Many of the local businesses that were directly affected by these floods were located right in the flood zones according to Honore. They have estimated that there are roughly 7,300 businesses that are now closed. Along with the tragedy of the floods and the closure of several businesses are the loss of jobs. As a result, thousands of people are out of work.

Businesses that have been affected by these floods can now take advantage of the
new loan programs that have recently been put into place for small businesses.

Purpose of the Loan Program

The purpose of the loans is to provide financial disaster recovery assistance to small businesses that have been impacted by the 2016 severe storms and flooding that took place in Southern Louisiana.

Interested business owners can now submit applications to the South Central Planning and Development Commission who is now taking applications on behalf of the state’s Restore Louisiana Small Business Program.

Who Qualifies for the Loans?

In order to qualify for the loan, certain qualifications must be met by the applicants before the funds will be issued.

Businesses that lost savings in the floods can now qualify for these loans. More specifically, small businesses that have experienced physical damages or out of pocket losses in the amount of $10,000, or those who have experienced a loss in revenue of at least 20% as a result of the floods may qualify.

Use of Funds

Applicants may use the funds to purchase movable equipment or for working capital to cover expenses that will be incurred for six months. These monthly expenses consisted of rent expense, mortgage expenses, monthly utility expenses, inventory as well as non-owner wages and benefits.

Qualified applicants may use the funds as a combined effort to rebuild the communities and neighborhoods that have been impacted by the floods. Businesses that had the greatest impact on these affected communities consist of childcare providers, healthcare companies, gas stations, construction companies, locally owned restaurants and other companies that provide goods and services for the local community.

Typical Repayment Terms

Unlike traditional loans, the loans that are being made available for business owners who have been affected by the floods will experience a 0% interest rate and under certain circumstances, 20% of the loans that will be issued MAY be forgiven. Please inquire when you apply.

How and Where to Apply for the Loan Program

For more information about applying for these loan programs, the impacted businesses may contact the SCPDC Restore Louisiana Small Business Program directly to learn more about how to qualify and apply for the loan program.

The applications may be filled in online and submitted or downloaded and completed offline, then returned to the appropriate office.

For your convenience, a 19-21 page checklist has been provided. Please review it carefully before applying as it contains various required documents.

You may deliver the entire completed application along with all of its attachments to one of their locations or you may simply complete your application and email it along with any required documents to brooke@scpdc.org

Interested business owners can also contact them by phone at 1-800-630-3791 or by visiting their website.

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