Small business loans from HUD available until end of December for those affected by Ida

Colin Campo, Houma Courier-Thibodaux Daily Comet
·2 min read

Three billion dollars has been made available as loans for small businesses affected by Hurricane Ida and other 2020-2021 Louisiana disasters.

In a push to help small businesses in the 36 parishes affected by Hurricane Ida, Hurricane Laura, Hurricane Delta, and/or the May floods, the Department of Housing and Urban Development has made available $3 billion in loans ranging from $10,000 minimum to $150,000 maximum. The loans have 0% interest, are 40% forgivable and require no principal payment for the first six months.

This means recipients of the loans will have to pay back only 60% of the loan over seven years after the first six months if they follow the rules set by the lenders. These rules are not difficult, South Central Planning and Development Commission Chief Executive Officer Cullen Curole said.

"If you don't pay the note, if you get into default for nonpayment, you get into default for not turning in receipts... again you have to turn in your annual tax return," Curole said when asked how someone could lose eligibility for the loan forgiveness. "It's silly, simple stuff, but it's dotting the I's and crossing the T's."

Small businesses in Downtown Thibodaux, Monday, December 11.
Small businesses in Downtown Thibodaux, Monday, December 11.

The deadline for applying for the loans is Dec. 31.

Four lenders are handling these loans, and the South Central Planning and Development Commission will be in charge of Terrebonne and Lafourche Parishes. To contact South Central Planning, call 1 (800) 630-3791, or go to https://www.scpdc.org/programs/restore-small-business/.

How to Qualify

To qualify for the loans businesses must meet these criteria:

  • Employ between one and 50 full-time staff.

  • Have been open and operating at the time of the disaster event.

  • Have at least $25,000 in annual gross revenues before the disaster.

  • Be located in one of the eligible parishes.

  • Have experienced loss from a 2020-2021 disaster.

  • Have an eligible unmet need after accounting for duplication of benefits.

What about other parishes?

The other three lenders are: Regional Loan Corporation - (504) 524-6172; NewCorp Inc. - (504) 208-1700; and North Delta Regional Planning and Development District - (318) 387-2572.

Here's a map of what parishes each of the lenders are in charge of: https://optimise2.assets-servd.host/utopian-bustard/production/Lender-Map.png?w=3000&h=3000&auto=compress%2Cformat&fit=crop&dm=1682345898&s=8e1b688afd65dbf4e0d54c20c316e27c.

This article originally appeared on The Courier: Small business loans available from HUD for Ida, other disasters