JACKSON - Gov. Haley Barbour has proposed a small business emergency bridge loan program to provide temporary working capital for small businesses in Hurricane Katrina-affected counties. The shortterm loan, modeled after a similar program in Florida, would bridge the gap between the time the storm hit and a businesses' receipt of other financial assistance.

The no-interest loans would range from $1,000-$25,000 under terms for periods of 90-180 days based on individual circumstances. Eligible businesses would have between two and 100 employees, and would have been in business at least one year prior to the hurricane. The loan must be used for items directly related to the physical impact of Katrina.

Barbour said he would ask the Mississippi Legislature to consider the small business loan proposal as part of a comprehensive program designed to help Mississippi recover.

In conjunction with Barbour's proposal, the Mississippi Development Authority (MDA) is establishing Business Assistance Centers (BACs) in the affected areas to assist local economic development organizations and businesses. MDA opened a BAC in Bay St. Louis to provide disaster relief assistance to small businesses that have been impacted by Hurricane Katrina. Counselors are available at the BAC, which is open from 9 a.m. until 5 p.m. Monday through Saturday in the Coast Electric Conference Center at the intersection of U.S. 90 and Main Street.

MDA partnered with the cities of Bay St. Louis, Waveland, the Hancock County Board of Supervisors, the Hancock County Chamber of Commerce and a host of other organizations to open the BAC in this Gulf Coast city.

"The Business Assistance Center represents a unique partnership of local, state and federal organizations, which recognize the impact Hurricane Katrina has had on small businesses throughout Mississippi," said Leland Speed, executive director of the MDA.