News Alert: Restore Louisiana Small Business Program
Posted: 7/25/2017 8:29:59 AM
Louisiana Business Emergency Operations Center
Restore Louisiana Small Business Program

The Restore Louisiana Small Business Program (RLSB) aims to provide assistance to eligible small
businesses and/or non-profit organizations located in areas adversely affected by the 2016 Severe

Storms and Flooding Events. OCD-DRU will provide program assistance to eligible businesses and/or
non-profit organizations through participating non-profit lenders, credit union and/or community
development financial institutions who will implement and administer a lending program to assist
impacted businesses and non-profits.

What is provided?
Community lenders will make loans to small businesses in the 51 flood-impacted parishes to provide
working capital and funds to repair or replace movable equipment and machinery. Assistance
for construction-related expenses is not available through this program.
The program will make loans between $20,000 and $50,000 to eligible businesses. If borrowers
comply with program requirements, the loan will be interest free and 20% of the loan will be forgiven
when 80% of the principal is repaid.

Who is eligible?
To be eligible for loans under the RLSB, an applicant business must meet the following criteria:
 Must be either a for-profit business or a private non-profit organization located in one of
the 51 parishes impacted by the 2016 Severe Storms and Flooding Events.
 Must have been directly impacted by the storms/floods, with a documented physical or
financial loss.
 Non-profit organizations will be evaluated for eligibility and ability to service debt based
on the secular operations of their organization.
 Must have eligible unmet needs after accounting for all insurance, federal, state, local and
private proceeds considered to be a duplication of benefit.
 Must have been operating at the time of the respective storm or flood event. The
applicant business must have been open before April 8 for the March 2016 floods and
before August 31 for the August 2016 floods.
 Must either a) be currently operating or b) demonstrate the ability to reopen upon
receiving assistance from the program.
o Businesses that are closed at the time of application, but who will be able to
reopen upon receiving assistance from the program must have a business plan and
demonstrate they have the funding necessary to reopen.
o Closed businesses must commit to re-opening in an eligible parish; they are not required to re-open in the same location in which they were operating at the time of the flood.
 Has a minimum of one full-time equivalent employee and no more than 50 full-time equivalent employees.
 Had a pre-storm minimum annual gross revenue of $25,000.
 Additionally, businesses must meet the following underwriting criteria, with exceptions considered on a case-by-case basis:
o Owners with greater than 20% ownership must have a minimum Beacon credit score of 600.
o Current business or personal debt coverage ratio of 1.1x or greater. Debt Coverage Ratio is defined as net operating income divided by total debt service.

When does the program start?
The program’s application window is currently open to all businesses, and will stay open as long as program funding is available. Loans will be underwritten and awarded as soon as possible

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