Louisiana’s small businesses can begin applying July 28 for loans from a $275 million grant program created by the Legislature. State Treasurer John Schroder is directing the program and said he is still working on the details.

The Advocate reported Friday that businesses will have to submit receipts of actual expenditures because lost income doesn’t apply. Schroder said the grant program is really more of a reimbursement program. Republican legislators set the $275 million in coronavirus aid aside for businesses with less than 50 employees.

If businesses want to get the grants of up to $15,000, they have to show receipts of coronavirus-related expenses. The grants don’t have to be paid back. Schroder said he will have more firm answers this week on how he is interpreting federal rules for the money.

An issue about whether landlords qualify for the loans hasn’t been resolved because of the lost income question. Schroder is encouraging commercial landlords to urge their tenants to apply for the money, because rent is an eligible expense for most businesses.

A spokesman for the New Orleans mayor said housing is “absolutely critical” and that Schroder has expressed a willingness to work with the city to find ways for residential landlords to qualify. However, it has to be done with the understanding that landlords who receive help agree to halt evictions for the properties involved.

The Advocate noted that the state grant program is set up differently from the Paycheck Protection Program. The PPP is a loan given by the federal government, and businesses can get it forgiven if they keep workers on the payroll. Schroder said keeping workers on the payroll isn’t required for the grant program.

The program approved by the state Legislature says businesses qualify if they were open in Louisiana as of March 1. They had to suffer an interruption of business during the pandemic and be owned primarily by Louisiana residents. The businesses also had to have customers or employees coming to its physical premises.

Louisiana received $1.8 billion in coronavirus aid from the federal government in what is known as the CARES Act. The funds were used to balance the state budget, help local governments recover from the coronavirus and for small businesses and front-line workers.

Interested businesses can go to the louisianamainstreet.com website to see if they qualify and apply there starting July 28. The legislative auditor will review all applications to ensure they are qualified.

The grant program is a great way to help businesses that may have missed out on other federal financial assistance.

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This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Crystal Stevenson, John Guidroz, Mike Jones and Jim Beam.