Joe Biden in New Orleans: Some communities won't have to repay Katrina loans | Breaking News from the Press-Register - al.com

Joe Biden in New Orleans: Some communities won't have to repay Katrina loans | Breaking News from the Press-Register - al.com: "Dozens of Gulf Coast communities that borrowed more than $1.2 billion in federal funds after the 2005 hurricanes will be allowed to apply for 'forgiveness' so they don't have to repay all the money, Vice President Joe Biden announced today.

Biden, during a visit to a New Orleans recreation center, said about 100 municipal governments in Louisiana and Mississippi secured the loans to cover a wide range of operating costs, including schools and emergency services. To qualify for loan forgiveness, a municipality must have had operating deficits during the three full fiscal years following hurricanes Katrina and Rita."