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How to Help Rebuild After Louisiana’s Floods

By U.S. News & World Report

Byron Clayton watched as the flood waters took over Baton Rouge, Louisiana.

“First we got the rain and with nowhere to go and the water kept rising even after the rain stopped,” says Clayton, president and CEO of Research Park Corp., a nonprofit that assists Louisiana entrepreneurs. “One place is fine and 100 yards down the street there is complete flooding … I’ve been amazed at how quickly everyone has come to the aid of others.”

A year and a half ago Clayton moved from Cleveland to oversee RPC, an umbrella organization that operates Louisiana Technology Park, a 45,000-square foot facility that houses more than two dozen startups; NexusLA, which focuses on regional collaboration, access to capital and technology workforce diversity; and Innovation Catalyst, a nonprofit that provides capital and services to Louisiana tech companies.

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One of the biggest challenges is getting access to investors. “We have investment opportunities, high-potential companies looking for funding. But we are a small state,” says Clayton, noting that Louisiana’s 4.6 million population is roughly twice of Houston. “Getting access to the capital we need is a top priority.”

It’s a similar discovery that Mike Eckert, the former president and CEO of The Weather Channel, made when he moved to New Orleans three years ago to be closer to his two grandsons.

“There wasn’t a formal angel investing infrastructure and there’s no doubt there’s an entrepreneurial explosion occurring here,” says Eckert, chairman of the NO/LA Angel Network and member of public policy committee for the Angel Capital Association, a national organization that oversees more than 200 angel groups and accredited platforms in North America.

Since Eckert founded the NO/LA Angel Network in 2014, the group of investors has grown from 40 to 132 and made 14 investments in seven Louisiana-based startups totaling $3.7 million. Although the sizes of the investing rounds have varied from $50,000 to more than $1 million, Eckert says the mean average has been approximately $600,000 per investment.

About 70 miles connects Baton Rouge and New Orleans via the Interstate 10 corridor. In the wake of the flooding in Baton Rouge and the 11 years in post-Katrina New Orleans, many serial entrepreneurs and investors have an opportunity to help build the region.

“Every day it gets better. You still have houses here in New Orleans that haven’t been touched since Katrina,” says Renee Pastor, senior vice president for investments for Raymond James and Associates. “We’ve had this influx of 30-something professionals, some who were doing volunteer work after Katrina, fell in love with the city and stayed.”

Consider Louisiana’s angel investor tax credit. Known as AITC, accredited investors who invest in businesses certified by the Louisiana Economic Development as Louisiana Entrepreneurial Businesses can earn a 25.2 percent tax credit on investments up to $720,000 per business per year and $1.44 million per business over the life of the program.

“A lot of people underestimate how much activity is going on Louisiana,” says Mark Graffagnini, founder and president of Graffagnini Law Corp., and NO/LA Angel Network’s member service chairman.

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Look at the region’s core competencies. While energy and petroleum have always been big drivers, that also includes sectors such as biotech, energy, health care, hospitality, agriculture, technology and chemical companies.

“Louisiana is a large player in the pipeline, liquefied natural gas and transportation space,” says Wade Ragas, a former University of New Orleans professor who now works as a real estate consultant and appraiser. He says “oil and natural gas prices have dropped by over 60 percent since mid-2014 and now may represent a buying opportunity.”

Pastor points to master limited partnerships, where a certain percentage of revenue is given to the shareholder and can be held within an exchange-traded fund or mutual fund. Look at a company’s history, yields and evaluate comparable midstream companies — the kind that work with the transportation of oil and gas — to fellow competitors, she says.

“MLPs aren’t supposed to fluctuate with price of gas, but I’m here to tell there is a direct price correlations and they got slammed just like oil prices got slammed when they started dropping in 2014,” Pastor says. “Analysts feel like they are seeing the bottom.”

There’s a big focus on water management. The Water Institute of the Gulf is a nonprofit research institute that focuses on Louisiana’s disappearing coastline and couples with state-wide and international water management projects.

Additionally, shipping, logistics and transportation based companies are a large factor since a significant percentage of the goods leaving America go through New Orleans via the Mississippi River.

Many experts also point to the rise in health care investment opportunities with the building of the Veteran Affairs hospital and University Medical Center in New Orleans as well as LSU’s Pennington Biomedical Research Center.

Look at tech startups. NO/LA Angel Network investments have included companies such as CyberReef, which focuses on security and connection for virtual private networks; MobileQubes cell phone charging kiosks; Bioceptive, which makes IUD devices; and SmartPak, which designs packaging for the beverage industry.

Other tech companies experts highlighted in the Silicon Bayou include AxoSim Technologies, a New Orleans startup researching its “nerve-on-a-chip” to test drugs instead of animals; Baton Rouge-based MasteryPrep, an online resource center that helps students prepare for the ACT and Kickboard, a software company for educators.

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Sherif Ebrahim, president and CEO of Strategic Management Group and managing partner of SMG Capital, two private equity and health care firms in Louisiana, suggests startups like Zlien, a cloud-based platform for liens waivers; and Lucid, a software company focused on big data. “These are things that aren’t sexy, but have the potential to be big money makers,” Ebrahim says.

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How to Help Rebuild After Louisiana’s Floods originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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