Small business loan program to be restored in Louisiana

Date: October 30, 2018

A benefits duplication correction could help to restore a small business loan program in Louisiana.

The Restore Louisiana Small Business Loan Program could come back with funding once President Donald Trump signs a correction of a benefits issue that resulted from Louisiana businesses receiving disaster recovery loans.

Efforts for this change began in 2016 after the Great Floods of that year forced many Louisiana small businesses to reach out for help in order to recover from the natural disaster. Unfortunately, by applying for a disaster recovery loan from the Small Business Administration, this made those businesses not eligible to receive any other kind of federal funding as it would be considered a duplication of benefits.

President Trump signed the legislation into law in early October, and Gov. John Edwards has submitted the required request for a waiver, according to the Gonzales Weekly Citizen.

If the President approves the waiver request and HUD issues its guidance for the funds,it’s possible this change could apply to small businesses in the Restore Louisiana Small Business Loan Program. This means the lenders would update awards for all current applicants, regardless of their stage in the program.

The Louisiana Office of Community Development noted that if a business affected by the SBA duplication of benefits policy applied to or received an award in the program, the owner should contact the lender that serviced the application.

Related Content: Small Business News | Loans | Louisiana

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