FEMA has canceled $33 million in community disaster loans issued in St. Bernard and St. Tammany Parishes after Hurricane Katrina, Sen. Mary Landrieu announced Wednesday.
$28.7 million went to Slidell Memorial Hospital. CEO Bill Davis said, "We appreciate this action by FEMA. The funds were used to continue important healthcare services to our community, to make significant repairs to our infrastructure and to replace vital equipment that was damaged or destroyed by Hurricane Katrina."
"Had this loan not been forgiven, it could have significantly harmed our financial health," Davis added.
The other loan, worth $4.6 million, went to the St. Bernard Parish School District.
“After more than eight years of persistence and with the support of local leaders in St. Tammany and St. Bernard, we changed the law to create a commonsense formula that rightly canceled over $33 million in loans today," Sen. Landrieu said.
"These parishes can now invest in providing our children with an excellent education and residents with high quality health care. Today's loan cancellations join a long list of Louisiana disaster loans that have been forgiven in recent months, and I’m hopeful we will see more as our communities continue to rebuild.”