La. to Offer $10 Million in ‘Bridge Loans’ for Businesses

Louisiana will offer $10 million in so-called “bridge loans” to businesses who are waiting for government help, insurance dollars or other types of assistance to keep their companies running after the hurricanes.

The companies then will be able to repay those loans, which are interest free for up to six months, with the assistance dollars they get from other sources, Gov. Kathleen Blanco and economic development officials said in announcing the program.

Louisiana officials have asked for federal help in starting a similar, more expansive $200 million loan program to help businesses stay open and avoid bankruptcy, but they had been criticized by some lawmakers for not starting one of their own programs.

The state loan program will be administered by the economic development department through Louisiana-based financial institutions – using all the dollars from a special state economic development fund.

Businesses located in the regions directly affected by Hurricanes Katrina and Rita that have been operating for at least a year and have maintained a certain credit rating will be eligible for the program. The governor’s office said the loan dollars will be available within three to five days after an eligible business applies – until the cash dries up.

The two-page application and program information is available at www.LEDforward.louisiana.gov.

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