Dec. 6, 2010
BATON ROUGE, La. – Louisiana’s Office of Community Development – Disaster Recovery Unit today announced $20 million has been awarded to 20 nonprofit organizations to provide low-interest loans and technical assistance to small businesses in areas impacted by hurricanes Katrina and Rita in 2005 or hurricanes Gustav and Ike in 2008.
Funded through the state’s Innovation Loan and Technical Assistance Program, $14.3 million will be disbursed as low-interest loans and $5.7 million will be used to provide technical assistance.
“While our original economic programs provided much needed resources and capital to small businesses in the parishes affected by Katrina and Rita, some areas have been slow to recover due to the delayed return of residents and the overall economic downturn,” said Commissioner of Administration Paul Rainwater. “We have the opportunity with this program to further assist the regions affected by the 2005 storms and also help parishes impacted by hurricanes Gustav and Ike in 2008.”
The loans to small businesses will range from $50,000 to $500,000, with loan terms between five and 15 years. A minimum annual interest rate of one percent will be charged. Technical assistance to small businesses will include, but will not be limited to, services such as business management, strategic planning, business plan preparation, loan application services and accounting, insurance, marketing and legal expertise.
Awards were made to the following organizations:
- ACCION Louisiana -- $2.4 million: $2 million for loans and $400,000 for technical assistance;
- ASI Federal Credit Union -- $2 million for loans;
- Capital Access Project -- $370,000 for technical assistance;
- CENLA Advantage Partnership -- $500,000 for technical assistance;
- Committee of 100 for Economic Development -- $265,700 for technical assistance;
- Greater New Orleans Development Foundation, Inc. -- $2 million for loans;
- Good Work Network -- $500,000 for technical assistance;
- The Idea Village -- $500,000 for technical assistance;
- Jefferson Parish Economic Development Commission -- $2 million for loans;
- Louisiana Association of Nonprofit Organizations -- $200,000 for technical assistance;
- LSU/Louisiana Business & Technology Center -- $243,300 for technical assistance;
- New Orleans BioInnovation Center, Inc. -- $2.5 million: $2 million for loans and $500,000 for technical assistance;
- Operation Hope -- $500,000 for technical assistance;
- Regional Loan Corporation -- $2 million for loans;
- Social Entrepreneurs of New Orleans -- $230,000 for technical assistance;
- South Central Planning and Development Commission -- $1 million for loans;
- SWLA Economic Development Alliance -- $500,000 for technical assistance;
- Terrebonne Economic Development Foundation -- $1.5 million: $1.3 million for loans and $200,000 for technical assistance;
- Vietnamese Initiatives in Economic Training -- $300,000 for technical assistance; and
- Urban Entrepreneur Partnership -- $500,000 for technical assistance.
Parishes to be served are Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, Rapides, St. Bernard, St. Landry, St. Mary, St. Tammany, Terrebonne and Vermilion.
The $20 million comes from Louisiana’s allocation of Community Development Block Grant funds awarded to the state by the U.S. Department of Housing and Urban Development for recovery from the 2005 and 2008 storms. Proposals were evaluated in a competitive selection process to determine which would be funded.
The Disaster Recovery Unit within the Office of Community Development is dedicated to helping Louisiana's citizens recover from hurricanes Katrina, Rita, Gustav and Ike. As the state's central point for hurricane recovery, the OCD-DRU manages the most extensive rebuilding effort in American history, working closely with local, state and federal partners to ensure that Louisiana recovers safer and stronger than before.