A Funding Debate For Katrina Business Areas

While there is a lot of talk of loans and the SBA and other help in the form of loans there is a general outcry because the businesses want grants and not loans.  In the words of some of the business owners "loans mean that they will be incurring more debt - something that they just cannot afford to do".

Some businesses have taken advantage of the loan programs being funding by the SBA but they have been told that the process could take as long as three months!  Some businesses hoping that they can hang on until then.

There is also the question of the employees themselves - some of which have taken advantage of government contracting where they are hired by the government to help with the relief efforts and leaving their employers high and dry.

There is proposed legislation pending allowing for more government funding which includes both loans and grants to the businesses in the Katrina-hit areas.