Treasurer Kennedy Says Low Interest GO Zone Bonds Available for Repairs

BATON ROUGE, LA – Businesses in 20 Louisiana parishes can now access $383.5 million in tax exempt Gulf Opportunity Zone bonds to help pay for losses resulting from Hurricane Ike, according to State Treasurer John Kennedy.

“This program will enable a private business to use the state’s tax-exempt borrowing authority to borrow money at a low interest rate in order to help pay for repairs,” said Treasurer Kennedy. “This new funding for Hurricane Ike will be especially beneficial for large businesses, public utilities or agencies such as housing authorities that suffered significant damages as a result of the storm.”

The Hurricane Ike GO Zone funding authority is part of the Emergency Economic Stabilization Act of 2008. Tax-exempt financing is available to a private business suffering a loss because of Ike or a public utility property damaged by the hurricane. Qualified mortgage bonds are also available for individuals who suffered damages to their principal residences because of Ike.

Unlike the original GO Zone Act of 2005, the emphasis on the Hurricane Ike GO Zone program is strictly on the repair of existing businesses, facilities and housing. The new program does not include funding for the expansion and development of new businesses or housing.

The following parishes qualify to participate in the Hurricane Ike GO Zone program: Acadia, Allen, Beauregard, Calcasieu, Cameron, Iberia, Jefferson, Jefferson Davis, Lafourche, Livingston, Orleans, Plaquemines, Sabine, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion and Vernon. The deadline for issuing GO Zone bonds for qualified projects is December 31, 2012.