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New Orleans Small Biz Has Big Struggle
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Roughly one-third of the city's estimated 9,600 businesses of all kinds have closed since Katrina, according to estimates in a state-commissioned study. More are struggling.
Mark Wilson, president of the French Quarter Business Association, says at least half the more than 450 businesses in the Quarter are in that category _ many are antiques or high-end specialty retailers such as Landry.
"If the state, which is sitting on so much money right now, could find more to give the city of New Orleans to market tourism, it would have a drastic effect _ and immediate effect _ on business and the French Quarter," Wilson said.
The Louisiana Recovery Authority, which oversees distribution of federal relief dollars, has allocated $20 million to market the city. Tourism officials, who say that extra money won't stretch far, have promised an aggressive new marketing campaign, with cable TV and magazine ads, but, so far, have provided few other details. A recent campaign featured celebrities with ties to New Orleans urging people to "come fall in love with the New Orleans all over again."
LRA also has approved a $100 million, first-come, first-serve grant program for hurricane-affected businesses. The program is tied up in red tape, needing approval of the Legislature and federal officials, but would provide eligible small businesses with grants of up to $20,000. The goal is to help as many as 7,000 businesses with fewer than 50 employees, said Robin Keegan, LRA's director of economic and workforce policy.
Officials hope to start sending out checks in a few weeks, Keegan said.
Local lenders will administer the program, and help shop owners put together marketing and business plans, she said. LRA also is starting a $38 million, no-interest loan program, with awards capped at $250,000.
"We really want success," Keegan said.
So does Gunter Preuss. But the owner and chef of Broussard's in the French Quarter is skeptical. Preuss, who said he relied on loans and savings to stay in business until he finally broke even in the fourth quarter of 2006, said he considers the $20,000 grant "an insult."
Still, neither he nor Landry is interested in giving up.
"It's not depressing to me, because I know we have to do this because we want this city to come back," Landry said. "We have to take the hard knocks, too."
