GO Zone Bond Program Expires Dec. 31

BATON ROUGE, La. (AP) — When Congress set up a tax-free recovery bond program after hurricanes Katrina and Rita to help spur private business development, applications poured in and it appeared demand would far exceed Louisiana's $7.8 billion bond capacity.

Now, as the

is weeks from expiration, state officials are racing to hand out the final dollars in the program. A bit less than $200 million remains to be allocated before the program must end Dec. 31.

Officials also are acknowledging that the tight timeline and a credit crunch left some of the most heavily damaged parishes unable to capitalize on the program.

The bonds are available to projects in 31 hurricane-impacted parishes. GO Zone projects are given a special borrowing status so businesses can borrow money more cheaply. The State Bond Commission determines who gets the GO Zone bond designation.