With the flood disaster that happened in Louisiana, many people especially business people, lost a lot of money. With the destruction of homes, businesses, and personal valuables, the only way to recover is by getting assistance. That is why there came several programs to help those who had lost their property to recover and get back on their feet. Among the programs are small business loans for the business people.
Business people who lost their savings in the floods can now benefit by taking these loans to recover their businesses. Some of the loans include.
The restore Louisiana program
This program has set aside 43 million dollars to help small businesses and other parties that were affected by the floods. To qualify, one must meet the following criteria:
• Your business must be located in the area affected by the 2016 floods. The business should be either a profit making or a personal non-profit organization.
• Your business must have been directly hit by the storm. It should have been open at the time of the storm. That means it must have been open before April 8 when the March 2016 flood happened or before 31st August when the August flood happened.
• The financial and physical loss on your business should be properly documented.
• The business should have at least one full-time worker but not exceeding more than 50 employees.
• The business must have been making at least $25000 annual gross revenue before the storm came.
• Your business should either be currently in operation or able to show proof that it will open after assistance.
• For businesses that are still closed, they are required to come up with a business plan to demonstrate that they will be able to reopen upon receiving funds. It is also not a must that they reopen in the original place they used to be before the flood. They are allowed to open anywhere in the eligible parishes noted by the organization.
• For the main owners businesses who have more 20 percent ownership, it is a requirement that each of them have not less than 600 Beacon credit score.
If you meet the above qualifications, then you can get this loan. If you qualify then you can get funds from $20000 to $50000 depending on your situation. The best thing about the loan is that it is interest-free. In addition to being interest-free, after repaying about 80 percent of the loan, the remaining debt is forgivable.
This money can be used as capital to restore your business or to finance a rent/mortgage to get back on your feet. You can also use it to rebuild and replace what you had lost in the floods. This is a good opportunity to get back on your feet with no interest fees. All the small business participants of this loan are also trained in various centers of technical assistance on how to recover fully. Financial planning and disaster management are also taught to them to equip them with necessary skills to survive.
All small business owners affected by the flood are encouraged to apply for the above loan if they meet the requirements. The loans are open for application from May 26. After the applications, loans are to be distributed from July to the end of 2017. You can find more details about this loan here.
The small business loan and guaranty program
Another program that you could consider is the small business loan and guaranty program. It is serviced by the Louisiana Economic Development Corporation (LEDC) in association with the federal State Small Business Credit Initiative (SSBCI). The program aims at helping businesses start or grow in Louisiana.
To qualify for this loan, you must meet the following requirements:
1. Since the program is for Louisiana small businesses, your small business should be in Louisiana.
2. The owners or stockholders should be residents of Louisiana.
3. If you receive funds below $100000, your business should create one new job opportunity.
4. If you get more than $100000, then you should create at least 2 job opportunities.
The application process
If you meet the above requirements, prepare a good business plan then apply for this small business loan. After preparing the business plan, contact the lending center to discuss the loan. The lending institution is responsible for determining how much funds you can get depending on how well your business plan is written.
After discussing the loan terms, the financial institution will send your application to the LEDC where it will be evaluated. This is the step that determines whether you will get the loan or not. After the loan is approved, the financial institution is notified with all the details of the contract. They can then call you and give you the funds right after you sign whatever contract the LEDC prepares for that specific loan.
If everything goes well, you can get funds from $50000 to $1.5M. This is determined by how much your business potential is. The loan also comes with no application fees, so it is ideal for anyone who needs a loan. They don’t charge you anything to apply. However, you need to have a minimum equity of 15 percent to 20 percent. The maximum guarantee you can get with this loan is up to 75 percent. The guaranty can take about one to three weeks to be processed. However, loans bellow $500000 take less time to be processed so you can get the funds faster.
Small businesses in Louisiana should take advantage of this opportunity and use it to start, grow, and expand their businesses. The loan seeks to encourage the growth of businesses in Louisiana while creating new job opportunities for the Louisiana residents. Small businesses affected by the flood can also apply for this business loan to help with the restoration of their businesses.
All you need is a good business plan and a mindset to succeed. Once you get the funds, make sure you utilize every penny to grow and expand your small business. Remember that the approval of these loans is often dependent on how well you are organized and how good your ideas are.
