FINANCIAL INCENTIVES

Baton Rouge Small Business Loan Fund

Program Description
The Baton Rouge Small Business Loan Fund, which is managed by Seedco Financial, provides loans from $50,000 to $350,000 for small business owners and not-for-profit organizations. Loans may be used for working capital, debt consolidation, expansion, or other activities. Eligible applicants include first time or experienced borrowers who have not been able to obtain bank or other standard financing, have existing businesses and a proven track record, employ 50 or fewer workers, and are located in East Baton Rouge Parish. The Loan Fund is a program of the City of Baton Rouge, the Baton Rouge Bankers Roundtable, and Entergy. Technical assistance partners include the Small Business Development Centers at LSU and Southern University.

Randy Veillon, Loan Officer
1520 Thomas H. Delpit Drive, 1st Floor
Baton Rouge, LA 70802
225.246.2069
rveillon@seedco.org

Louisiana Economic Development Corporation (LEDC)

LEDC is the administrator of Louisiana Economic Development's financial assistance programs. LEDC does not make direct loans. LEDC supports small business loans by reducing risk to the traditional lending community through the following loan guaranty programs:

Small Business Loan Program

Program Description
Provides loan guarantees and participations to banks in order to facilitate capital accessibility for small businesses (as defined by the SBA). Guarantees may range up to 75% of the loan amount, not to exceed a maximum of $1.5 million. Loan participations of up to 40% are also available.

Requirements
Small business concerns domiciled in Louisiana whose owner(s) or principal stockholder(s) shall be a resident of Louisiana. Applicants must have a business plan and a bank that is willing to fund the loan. Collateral-to-loan ratio will be no less than one-to-one.

LEDC
225.342.5675

Micro Loan Program

Program Description
Provides loan guarantees and participations to banks in order to facilitate capital accessibility for small businesses. Guarantees may range up to 80% of the loan amount, not to exceed a maximum of $50,000.

Requirements
Small business concerns domiciled in Louisiana employing 150 or fewer employees whose owner(s) or principal stockholder(s) shall be a resident of Louisiana. Applicants must have a business plan and a bank that is willing to fund the loan. Collateral-to-loan ratio will be no less than one-to-one.

LEDC
225.342.5675

Contract Loan Program

Program Description
Provides a loan participation and guarantee to a bank for government contract loans. These loans are intended to help a small business finance working capital for contracts with local, state, or federal government agencies. Loans may range from $5,000 to $1,000,000 and must be for terms of one year or less.

Requirements
Small business concern domiciled in Louisiana that meets the SBA small business definition, with preference given to certified minority businesses, women owned businesses, or businesses owned by disabled persons. An assignable contract for goods or services with a federal, state, or local entity is required.

LEDC
225.342.5675

Bonding Assistance Program

Entrepreneurial Services is the administrator of the Small Business Bonding Assistance Program, as well as other programs to assist small business owners and entrepreneurs.

Program Description
A public-private partnership between Louisiana Economic Development and the surety industry provides small construction businesses with the bonding assistance necessary for them to compete for public and private contracting opportunities. LED provides collateral to the surety company of up to 25 percent of the base contract amount, or $200,000, whichever is less, to obtain reasonable rates for bid, payment, and performance bonds for small contractors.

Requirements
Business must be certified active in the Small and Emerging Business Development Program. Bond underwriting is accomplished by the surety company and the surety company has final bonding approval authority.

Torri Buckles
225.342.5663
tbuckles@la.gov

Mentor-Protégé Tax Credit

Program Description
With the Mentor-Protégé Tax Credit program Act of 2007, mentor firms can receive Louisiana income or franchise tax credits of up to $50,000 per year by making technical assistance available to a protégé firm.

Requirements
Mentor Firms must demonstrate that they are in healthy financial standing and have the capacity to act as a mentor. Protégé firms must be certified by the Small and Emerging Business Development Program and be in “good standing” with the Secretary of State.

David Bennett
225.342.5882
david.bennett@la.gov

United States Small Business Administration (SBA)

An agency of the federal government, the Small Business Administration provides financial assistance to small business owners in Louisiana and across the United States. The SBA supports small business loans by reducing risk to the traditional lending community through the following loan guaranty programs:

7(a) Loan Guaranty Program

Program Description
This is the SBA's primary business loan guaranty program. To accommodate a wide range of financing needs, the program has broad eligibility requirements, credit criteria, loan structures, loan proceeds usages, and availability. Guarantees may range up to 85% for loans up to $150,000, and up to 75% for loans up to $2 million, with a guaranty cap of $1.5 million for any one business.

Requirements
7(a) loan guaranty eligibility is based on company size, the nature of the business, use of proceeds, and other factors. More about SBA's eligibility requirements can be found at www.sba.gov/services, then select "Loan Eligibility" from the "Financial Assistance" list along the bottom of the page.

Local lending institutions, development companies, intermediaries, and venture capital firms that make loans to investment capital.

SBA 504 Loan Program

Program Description
An economic development program that provides long-term, fixed-rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, and equipment. The maximum debenture is $1.5 million for businesses that create a certain number of jobs or improve the economy of the locality; $2 million for businesses that meet a specific public policy goal; and $4 million for manufacturers.

Requirements
Businesses that receive 504 loans have a net worth under $7.5 million, net profit after taxes under $2.5 million, are organized for-profit with a business type of retail, service, wholesale, or manufacturing.

JEDCO Development Corporation, Avondale, 504.875.8908
Louisiana Capital CDC, Inc., Lafayette, 337.234.2977
New Orleans Regional Loan Corporation, New Orleans, 504.524.6172
Louisiana Business Loans, Inc., Monroe, 318.323.0878
ArkLaTex Investment and Development Company, Shreveport, 318.632.2022

Community Express Pilot Loan Program

Program Description
Provides streamlined business financing and management and technical assistance to small businesses located in distressed or underserved markets. Approved lenders may use streamlined and expedited loan review and approval procedures to process SBA-guaranteed loans up to $250,000. Borrower must receive technical assistance from lender to qualify for this program.

Requirements
Eligibility is based upon business size and location.

Center for Rural & Small Business Development, Baton Rouge, 225.771.3785

Micro Loan Program

Program Description
Provides small loans ranging from under $500 to $35,000 to entrepreneurs, including veterans.

Requirements
Written business plan to accompany loan request for typical business purposes like working capital, machinery and equipment, inventory, and leasehold improvements.

Newcorp Business Assistance Center, New Orleans, 504.208.1700

Surety Bond Guarantee Program

Program Description
A public-private partnership between the federal government and the surety industry providing small businesses with the bonding assistance necessary for them to compete for public and private contracting opportunities. SBA guarantees bid, payment, and performance bonds issued by surety companies for individual contracts of up to $5 million on behalf of eligible small construction, service, and supply contractors.

Requirements
Eligibility is based upon business size, typically small construction companies that lack the combination of working capital and a performance track record necessary to secure bonding on a reasonable basis through regular commercial channels.

R.A. Brunson, Inc., Baton Rouge, 225.927.2282
Wright & Percy Insurance, Baton Rouge, 225.336.3200

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