Local government entities in Louisiana may be eligible for federal loans if they have revenue shortfalls because of August’s severe storms and floods.
- FEMA’s Community Disaster Loan Program (CDLP) may provide loans of up to $5 million to eligible applicants that suffered a substantial loss of tax or other revenue and have a demonstrated need for financial assistance in order to perform their governmental functions.
- Local governments in the declared disaster area may be eligible for CDLs so they can continue offering essential services. Some examples include:
- School districts
- Fire and law enforcement districts
- Sewer and water districts
- City and parish governments
- Local government entities in the following parishes are eligible to apply: Acadia, Ascension, Assumption, Avoyelles, Cameron, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Point Coupee, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge and West Feliciana.
- Loan terms are five years. However, they may be extended to 10 years. Interest is set at the rate for a 5-year Treasury bill, adjusted to the nearest 1/8 of a point on the day the promissory note is executed.
- The loans cannot be used for the non-federal cost share of disaster grants, capital projects like new construction, or to repair or restore damaged public facilities.
- FEMA provides technical assistance to expedite the application and approval process.
- Apply for CDLP through the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP). Contact Allison Hadley of GOHSEP for more information. She may be reached at 225-339-3798 or by email.
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