$2.5M Grant for Business Recovery

As the title suggests, a $2.5 million grant is being provided to the Louisiana Economic Development Department “for business assistance and recovery” in the wake of Hurricanes Gustav and Ike. What is this money intended to do? According to the LED press release:

“LED plans to use the $2.5 million investment to fund hurricane recovery projects, including six business counseling centers currently located in affected communities, a 24-7 business recovery information center available at 1.877.610.3533, technical assistance for small businesses impacted by the hurricane and long-term economic recovery strategic planning.”

Let me see if I have this straight, the federal government is giving money to the state government so the latter can operate counseling centers? Meanwhile, small businesses in the affected areas can come to one of the six centers to apply for recovery loans that will take weeks, possibly months, to get.

I suppose I am a little surprised that it took three full weeks for the state to get a grant from the feds even though everyone knew the hurricanes were coming well in advance.

The lesson for all small businesses is, at the very least, to have a readily accessible cash reserver that can last at least a month, preferably two. Clearly, the government is a last resort as a means to recovery. For all their anticipation, planning, preparing, etc. -- which I know Louisiana authorities took very seriously this year -- they are still quite slow to act.

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