The Louisiana Economic Development Corporation offers four (4) loan programs designed to assist small businesses. These programs include the following: Small Business Loan Program, Micro Loan Program, Contact Loan Program, and Small Business Linked Deposit. Review each option and request your application from the corporation.

In addition to loan programs, Louisiana offers a number of incentive programs. Be sure to review them for eligibility.

Note: The abbreviation LEDC used in the following programs refers to the Louisiana Economic Development Corporation not the Livingston Economic Development Council.

Option One:

SMALL BUSINESS LOAN PROGRAM

LEDC assistance offered Loan guarantee or participation. The guarantee is a guarantee of loss to the lender.
ELIGIBLE applicants Louisiana small business as defined by SBA.
SIZE limit/ project
(LEDC Portion)
$50,000 minimum
$1,500,000 maximum
PERCENT of project cost Guarantee – no more than 75% of loans up to $650,000; no more than 70% of loans up to $1,100,000; or no more than 65% of loans up to $2,300,000.
Participation – up to 40% of loan up to $1,500,000.
USE of funds Guarantee – fixed assets; equipment or machinery; and line of credit for accounts receivable and/or inventory.
Participation – fixed assets; equipment or machinery.
Note: Debt restructure is limited to no more than 25% of loan request.
EQUITY required Start – ups – 20%
Acquisitions – 20%
Expansion – 15%
COLLATERAL coverage Minimum of $1.00 of collateral for each $1.00 of loan.
INTEREST rates Guarantee – Up to 21/2% above New York prime at either a fixed or a variable rate.
Participation – 1% above the rate for a U.S. Treasury security of equal duration.
TERM Term set by bank with LEDC concurrence but in no case greater than 20 years.
FEES LEDC will charge a guarantee fee of between 0.5% and 2% of the guarantee amount.
Application fee: $1.00.
For more information please contact: Financing Assistance, Louisiana Economic Development Corporation, Baton Rouge, La 70802; 225-342-5675, Fax 225-342-0142; web-ledc@lded.state.la.us
^ back to top  


Option Two:

MICRO LOAN PROGRAM

LEDC assistance offered Loan guarantee or participation. The guarantee is a guarantee of loss to the lender.
ELIGIBLE applicants Louisiana small business as defined by SBA.
SIZE limit/ project
(LEDC Portion)
$5,000 minimum
$50,000 maximum (guarantee)
$25,000 maximum (participation)
PERCENT of project cost Guarantee – no more than 80% of loans up to $62,500
Participation – up to 50% (not to exceed $25,000)
USE of funds Guarantee – fixed assets; equipment or machinery; and line of credit for accounts receivable and/or inventory.
Participation – fixed assets; equipment or machinery.
Note: Debt restructure is limited to no more than 10% of loan request.
EQUITY required Start – ups – 10%
Acquisitions – 10%
Expansion – 10%
COLLATERAL coverage Minimum of $1.00 of collateral for each $1.00 of loan.
INTEREST rates Guarantee – Up to 4% above New York prime at either a fixed or a variable rate.
Participation – 1% above the rate for a U.S. Treasury security of equal duration.
TERM Term set by bank with LEDC concurrence but in no case greater than 5 years.
FEES LEDC will charge a guarantee fee of at least 1% of the guarantee amount.
Application fee: $1.00.
For more information please contact: Financing Assistance, Louisiana Economic Development Corporation, Baton Rouge, La 70802; 225-342-5675, Fax 225-342-0142; web-ledc@lded.state.la.us
^ back to top  


Option Three:

CONTRACT LOAN PROGRAM

LEDC assistance offered Loan guarantee and participation. The guarantee is a guarantee of loss to the lender.
ELIGIBLE applicants Louisiana small business as defined by SBA.
SIZE limit/ project
(LEDC Portion)
$5,000 minimum
$1,000,000 maximum
PERCENT of project cost LEDC will participate in a loan and guarantee a portion of the bank’s share. LEDC’s participation can be no greater than 50% of a loan, up to $500,000. LEDC can also guarantee 50% of the bank’s portion of the contract’s first draw.
USE of funds To support a contract for goods and services for a federal, state, or local entity. All proceeds of the contract will be assigned and collected by the bank.
EQUITY required Start – ups – 10%
Acquisitions – 10%
Expansion – 10%
COLLATERAL coverage Minimum of $1.00 of collateral for each $1.00 of loan.
INTEREST rates Up to 4% above New York prime at either a fixed or a variable rate.
TERM Up to 180 days past the contract completion date, but no more than 11/2 years.
FEES LEDC will charge a guarantee fee of at least 1% of the guarantee amount.
Application fee: $1.00.
For more information please contact: Financing Assistance, Louisiana Economic Development Corporation, Baton Rouge, La 70802; 225-342-5675, Fax 225-342-0142; web-ledc@lded.state.la.us
^ back to top  


Option Four:

SMALL BUSINESS LINKED DEPOSIT

LEDC assistance offered An interest rate buy-down by the State Treasure’s Office on a loan to a small business which creates new jobs or saves existing jobs.
ELIGIBLE applicants Louisiana small business with less than 150 employees.
SIZE limit/ project
(LEDC Portion)
$200,000 maximum
PERCENT of project cost N/A
USE of funds A state-owned CD placed in a bank at up to 3% less than the normal investment rate to reduce the interest rate on a small business loan by equal amount. This CD is in no way to be offered as security or collateral for any small business loan.
EQUITY required N/A
COLLATERAL coverage N/A
INTEREST rates Up to 3% less than the bank rate offered without the linked deposit.
TERM 1 year with a maximum of two.
1-year extensions for a total of three years.
FEES N/A
For more information please contact: Financing Assistance, Louisiana Economic Development Corporation, Baton Rouge, La 70802; 225-342-5675, Fax 225-342-0142; web-ledc@lded.state.la.us
^ back to top