News - Local
State's New Rules For Developers Borrowing Money
Posted: Apr 15, 2010 11:06 AM by Melissa Canone
Updated: Apr 15, 2010 11:06 AM
BATON ROUGE, La. (AP) - Changes have been made to the state's
rules for developers borrowing money through the federal Gulf
Opportunity Zone Act.
The cap on GO Zone borrowing approval was raised from $100
million to $250 million. And developers will have to tap the money
within 90 days - as opposed to the eight months previously allowed.
The rule changes were suggested by Economic Development
Secretary Stephen Moret, hoping that would ensure the state uses
its $780 million balance in GO Zone bond capacity before the Dec.
31 deadline set by Congress.
The State Bond Commission agreed to the changes without
objection Thursday.
The GO Zone bond program was set up by Congress after hurricanes
Katrina and Rita in 2005 to help spur growth in 31
hurricane-impacted parishes.
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