PICAYUNE, Miss. (AP) - The remainder of a $3.2 million loan approved for the city of Picayune after Hurricane Katrina in 2005 has been forgiven by the Federal Emergency Management Agency.
After the storm, many businesses and services in Picayune shut down, causing the city to lose millions in tax dollars and spend millions in operating expenses. The FEMA loan was to replace some of those lost dollars.
The Picayune Item reports (http://bit.ly/Odj3EL) half of the loan was forgiven in 2010. The city was informed March 25 by FEMA that the remaining $1.6 million also was forgiven.
Meanwhile, Pearl River County officials are working to get a similar loan forgiven by FEMA.
The county received $4.6 million to continue funding the county's day-to-day operations.
Officials hope for a decision from FEMA by June.
Information from: Picayune Item, http://www.picayuneitem.com