The Louisiana House has approved a bill that would create a 300 million dollar grant program for small businesses by using money provided to the state from the federal CARES Act. The measure passed on a 72-26 vote, but New Orleans Representative Gary Carter argued the governor would rather send this money to local governments.
“It reduces the amount that is eligable to go to the local municipal parishes from 811-million dollars to 511-million dollars,” said Carter.
The Louisiana Congressional Delegation sent Governor Edwards a letter asking the 811-million be sent to local governments to cover COVID-related revenue loss.
Houma Representative Jermone Zeringue says these grants are crucial for propping up businesses that fell through the cracks when it came to the big federal stimulus programs.
“In the first 21 days, the State Treasurer will only award grants to eligible businesses that did not receive a United States Small Buisiness Administration guaranteed paycheck protection loan,” said Zeringue.
Companies that received other federal programs will be barred from receiving funds for the first 21 days as well. Businesses must have fewer than 50 employees to qualify.
Initially, the proposal only called for 200 million to be used for the grant program. River Ridge Representative John Illg questioned why the additional 100 million was added.
“Can we just hold back that extra hundred million? We were getting push back at 200 million at 300 million my phone will not stop,” said Illg.
New Orleans Mayor Latoya Cantrell slammed the legislation, saying it yanks away desperately needed funds from local governments.
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