notes from across the pond

Harry Alford - President/CEO, National Black Chamber of Commerce
Ernest Broussard - Executive Director of Planning & Development, Cameron Parish Recovery
Eugene Cornelius - Louisiana District Director, US Small Business Administration
Mark Drennen - President & CEO, Greater New Orleans, Inc.
Darlene Kattan - Executive Director, Louisiana Hispanic Chamber of Commerce
Andy Kopplin - Executive Director, Louisiana Recovery Authority
Ronald Langston - National Director, Minority Business Development Agency
Tiny Nguyen Owen - Chair, Asian Chamber of Commerce of Louisiana

Roop Raj - WDSU (Moderator)

Harry Alford:
Committed 20% budget and time to GUlf Coast
$1.2bn contracts and commitments

LA had been remiss in honoring Fed programs
Implementing programs that exist already and work

Ernest Broussard:
Recovery is a herculean assignment
Don’t meet traditional planning models
New assignments in energy, homeland security since Katrina

20% strategic oil reserve, 300m barrels in ground
Leads to Homeland Security problems

Feel we have to be generational
Our options are to make it better, stronger and safer

Eugene Cornelius:
Look at hope and recovery
$8bn in disaster loans
At 81% in pre-Katrina loan volume
Key cos make $140m in loans in 2005 (15 year record)
Now at $125m, so we are seeing activity

SW and SE LA seeing decrease of 35/40% in loan volume

Significant success - 2006 loan volume is being paid off faster
Major impact in small businesses coming back
Growth in North Shore businesses and increase in Jefferson Parish businesses

Mark Drennen:
5 areas we could see immediate results
1) Higher Education
Where are we going to get our future professionals?
Ready to go. Need state to help rebuild campuses and bring back profs and students.
Facilities are the only thing holding them back

2) Health
Can’t have private hospitals waiting, losing money for 7 years
Reimbursement of Medicare based on pre-Katrina numbers
Must recognize private hospitals losing money

3) Infrastructure
Reaping benefits of false economy
Billions of dollars going to state
Lots of other strategis investments that need to and can be made
Ports, airports, etc

4) Insurance
Economy is not going to rebuild as quick without affordable insurance
Congress need to come together

5) Air Travel
Need to figure out how to get more flights in and out NOLA Airport

Darlene Kattan:
After storm, lost lot of members. Couldn’t find them.
Committed to staying.
More important than ever cos new demographic

Into NOLA, arrived Hispanic population.
Many from around USA where had own business already.
Rebuilding the city.

Realized inherent problems.
Assimilation
Therefore created Hispanic language center and partnered with schools/colleges to provide english, computer and business training.

Provided healthcare
Not typical to Chamber of Commerce, but needed to function

Hispanic businesses among first to come back
Not used to government help

Immigration reform - by not having guest worker program it creates problems

Andy Kopplin:
Business assistance has to be given out right after catastrophe
LRA provided bridge loans
Big challenge was having collateral to get loan
If your business and house flooded, lost both normal sources collateral
A grant with a loan is the way to bring them back

Long term, must continue to focus on bringing back small business community
Unlike most post disaster recoveries, still 2 years out from pre-Katrina areas
No set aside for small business assistance
$28.5m to tourism, $40m to help train workers, $28.5m for colleges/universities

Ronald Langston:
Restore marine infrastructure
Economic development strategy for overall region - partnerships to stimulate capital investment
Trade -
Wetlands

In 2002, over 57,000 minority firms generating $6.1bn in receipts
Increased 38% from 1997 to 2002
Trajectory and trend very positive
Goal is to return to that

Since Katrina, opened offices in NOLA and Baton Rouge

Tina Nguyen Owen:
Information and New Policy/Procedure
Access to capital is problem for small businesses

All kinds of funding, but lack knowledge/ability to tap into funding
Not reaching those most in need
Local banking community not well versed either
Must have traditional lending profile

Disparity in government contracts
Asian businesses are not getting federal contracts

Incentives exist - GoZone, Payment in Lieu of Taxes, Low Income Housing Credit
Can all of that be used in conjunction with Small Business Loans at local level?

Roop Raj:
What is being done to help black business people get back to LA?

Harry Alford:
Used to be 11th largest in country
Maybe cos segregation
Higher amount of black owned business where higher no. black communities
LA lacks diversity of black businesses

Can now build to be better
Increase capacity
Develop construction, it, tech businesses

Entrepreneurship evolves from opportunities available
Movement affort to encourage business brothers to come back to LA

Ernest Broussard:
Historically, Cameron’s economy based on hunting, fishing, petrol refining
LNG presence new + Strategic oil reserve

Changing models to fit our needs is biggest challenge
Doesn’t change unless we change model
Will capitalize on traditional, but need to promote new ones

Eugene Cornelius:
Businesses moving out to Jefferson, St Tammany is a big problem
Have to create environment more inducive to drawing them in and keeping them
Leave cos simply easier to do business
Must take proactive stance on easing regulation

Harry Alford:
Took me 6 months to figure out how to do business in NOLA
How do we hook up all small fifedoms?

Mark Drennen:
Holdup is rebuilding campuses
We look at it as emergency. Others don’t see it like that.

I’d like state to have bond issue

Roop Raj:
Money has been allocated. What’s happened to it?

Mark Drennen:
Process put in place to ensure everything done in accordance to law.

Roop Raj:
What else can be done for the Hispanic population?

Darlene Kattan:
Everyone wants workers
Report done by PERK, in cooperation with World Bank and Brookings, to calculate demographics SE LA using credit data
Will be able to determine pre-Katrina levels and then follow them
Able to look at other data, phone records, utility bills for those without credit records
Will help with projections
Missing piece has been how many people are here as workers?

Starting workforce development training
Industry specific
Done in bi-lingual format

Roop Raj:
Where do we stand today in terms of business?

Andy Kopplin:
On rebound from greatest catastrophe in US history
About 100,000 below pre-Katrina levels
Down to 7,000 in Orleans Parish
Up to 8,000 now

Fed government doesn’t put its own agencies through processes, LA has to go through

Roop Raj:
How do you tell businesses across country to come to LA when levees don’t work, etc?

Ronald Langston:
LA one of best places to make investment
Must invest for short and long term

Efficiency and execution critical for all of us

As population becomes more minority based, must become more viable
Has opportunity to set tone
Must be active and viable
Working with state and local government has been challenge

Need to focus on how to work better
Can only get better

Eugene Cornelius:
Have key to South America and world at our feet
Need to focus globally
3rd/4th largest port in US

Roop Raj:
How are things going for Asian businesses?

Tina Nguyen Owen:
Quietly rebuilding
Since Katrina, family network tapped out
Seriously looking into mainstream banking system/funding

Need demographics and information
Incentives out there not going to right people
GoZone - no policy, procedure in place

Need working capital
Governor Blanco gave small amount - $18,000 average

Q: Immediately after Katrina, went into no bid environment. People cannot get back on feet unless they can run their businesses. Awarding contracts in advance deprived small businesses of LA. Section 3 of HUD ignored. Small businesses struggling in every arena. Disincentive to conserve and be more efficient with energy.
Which agency is supposed to teach and make small businesses aware of contracts available?

Ronald Langston:
SBA has offices which are charged with education about opportunities
Didn’t have footprint a year ago.
Other chambers have been here
Could be a lot better, but we have been here on ground
A lot of local firms didn’t have size, scale and capacity
Brought in firms to partner with local firms