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The City of New Orleans

Mayor Mitchell J. Landrieu

Finance Loans & Grants

LED Small Business Loan Program

The Louisiana Economic Development Small Business Loan program provides loan guarantees and participations to banks in order to facilitate capital accessibility for businesses. The program's purpose is to provide financial assistance, which will help with the development, expansion and retention of Louisiana's small businesses. Benefits 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.

Eligibility

Must be a Louisiana small business (as defined by the Small Business Administration). Small business concerns domiciled in Louisiana whose owner(s) or principal stockholder(s) shall be a resident of Louisiana.

How to Apply

To apply for funding through the Small Business Loan program, the following procedure must be followed:

  1. A detailed business plan must be submitted first. You may also contact the nearest small business development center for assistance in developing your business plan.
  2. Submit the completed business plan to your local bank and establish a relationship with a lending officer.
  3. Submit a copy of the completed business plan to Louisiana Economic Development Corporation, along with the name of your bank and contact person.
  4. http://www.louisianaeconomicdevelopment.com/page/small-business-loan-and-guaranty-program

Micro Loan Program

The Micro Loan program provides loan guarantees and participations to banks for micro business loans. To stimulate the flow of private capital, long-term loans and other financial assistance for financing are necessary for the development of small business concerns in Louisiana. Benefits Provides up to 80% guarantees and state participations up to 50% for banks that fund loans from $5,000 to $50,000.

Eligibility

Must be a Louisiana small business (as defined by the Small Business Administration).

How to Apply

To apply for funding through the Micro Loan Program, the following procedure must be followed: 1.A detailed business plan must be submitted first. Use the Outline for a Business Plan located in Related Content as a guide. You may also contact the nearest small business development center for assistance in developing your business plan. 2. Submit the completed business plan to your local bank and establish a relationship with a lending officer. 3. Submit a copy of the completed business plan to Louisiana Economic Development Corporation, along with the name of your bank and contact person.

Louisiana's Community Development Block Grant Program

The primary objective of the Louisiana Community Development Block Grant (LCDBG) Program is to provide assistance to units of general local government in non-entitlement areas for the development of viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Non-entitlement areas are municipalities with a population of less than 50,000 and parishes with an unincorporated population of less than 200,000. Each activity funded under the LCDBG Program must address one of the following two national objectives: Principal benefit to low and moderate income persons (at least fifty-one percent) Elimination or prevention of slums and blight.

Economic Development Award Program (EDAP)

The purpose of the Economic Development Award Program is to assist publicly owned infrastructure for industrial or business development projects that promote targeted industry economic development and that require state assistance for basic infrastructure development. Benefits Provides a minimum of $50,000 for publicly owned infrastructure for industrial or business development projects.

Eligibility

Eligible applicants are public or quasi-public state entities or political subdivisions of the state, along with a private company who will be the primary beneficiary of the award. Preference will be given to projects for industries identified by the state as target industries and to projects located in areas of the state with high unemployment levels. The minimum award request is $50,000. Projects must create or retain at least 10 permanent jobs in Louisiana. Eligible project costs may include, but are not limited to: engineering and architectural expenses, site acquisition, site preparation, construction expenses, building materials and capital equipment.

How to Apply

To apply for funding through the Louisiana Economic Development Corporation (LEDC), the following procedure must be followed: 1.Submit an EDAP Pre-Qualification Form in the Related Content section for review and approval. 2. If approved, a full application must be filed by public/quasi-public entity and private company. 3. Application is reviewed for completeness and content by the program specialist, and an economic impact analysis is prepared by Louisiana Economic Development's statistician. 4. Application is then presented to LEDC for approval. 5. Contract is prepared in accordance with the state's approval process.

Contract Loan Program

The Contract Loan Program provides loan participations and guarantees to a bank for government contract loans. These loans are intended to help businesses finance working capital for contracts with local, state or federal government agencies. Benefits Provides participations with banks that fund government contract loans from $5,000 to $1 million for terms of one year or less. Louisiana Economic Development Corporation's participation shall in no case exceed $500,000.

Eligibility

Must be a Louisiana small business (as defined by Small Business Administration). Applicants must have a business plan and a bank that is willing to fund the loan. Applicants must be small businesses whose owner(s) or principal stockholder(s) shall be a resident of Louisiana and the business is domiciled in Louisiana. Applicants must have an assignable contract for goods or services with a federal, state or local entity.

How to Apply

To apply for funding through the Contract Loan program, the following procedure must be followed: Submit the completed business plan to your local bank and establish a relationship with a lending officer. If needed, contact a small business development center nearest you for assistance in developing your business plan. Your local bank should contact the Louisiana Economic Development Corporation to discuss the bank's participation in the Contract Loan program.

Payment in Lieu of Taxes (PILOT)

Made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real estate property. Usually it relates to the foregone property tax revenue.

The Industrial Development Board will essentially own the facility and lease it back at a predetermined rate which will be less than the ad valorem on the facility. Timeframe is determined by a cost benefit analysis. Past PILOTs have ranged from 10 to 30 years.

Industrial Revenue Bonds

Industrial Revenue Bonds can be issued by New Orleans Industrial Development Board to finance industrial sites and buildings, equipment, storage facilities and pollution abatement and control projects.

The issuance of revenue bonds for manufacturing facilities generally takes about 90 to 120 days to complete. The following steps, with minimal variations in order, depending principally on the type of Issuer, are generally required for the issuance of bonds:

  • Communications begin with the Issuer to determine qualification of Project.
  • Submission of an application (together with applicable fees, if any) to the Issuer.
  • Adoption of the official intent resolution (preliminary approval) by the Issuer.
  • Submission of application to State Bond Commission for preliminary approval. (A check must be sent and made payable to the Louisiana State Bond Commission representing the State Bond Commission initial application fee in the amount of $1,500.)
  • Determination of the structure and method of offering the Bonds.
  • Financing documents drafted and distributed to all parties.
  • Financing documents to be reviewed and finalized, and Official Statement, if applicable, to be drafted.
  • Issuer adopts final approval resolution approving the issuance of the Bonds, the execution of financing documents and the sale of the Bonds; Issuer will also conduct a public hearing at this time.
  • Volume cap application is filed with State Bond Commission.
  • Obtain state volume cap allocation.
  • Obtain approval of the parish governing authority.
  • Obtain approval from the Louisiana Secretary of Economic Development.
  • Bonds are delivered to the original purchaser.
     
  • Industrial Revenue Bonds
 
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Last updated: 12/11/2014 11:19:58 AM

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