Financial Assistance
Administered by the Louisiana Economic Development Corporation (LEDC)
PROGRAMS
Economic Development Award Program (EDAP)
Provides assistance for publicly-owned infrastructure to assist industrial or business development projects that promote economic development and that require state assistance. An eligible applicant must be a public or quasi-public state entity or a political subdivision of the state and 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 $25,000. Projects must create or retain at least ten (10) permanent jobs in Louisiana. Eligible project costs may include, but are not limited to, the following: engineering and architectural expenses, site acquisition, site preparation, construction expenses, building materials, and capital equipment.
Small Business Loan Program
Provides loan guarantees and participations to banks in order to facilitate capital accessibility for businesses. Guarantees may range up to 75 percent of the loan amount, not to exceed a maximum of $1.5 million. Loan participations of up to 40 percent are also available. Applicants must have a business plan and a bank that is willing to fund the loan.
Micro Loan Program
Provides loan guarantees and participations to banks that fund loans ranging from $5,000 to $50,000 to Louisiana small businesses.
Contract Loan Program
Intended to provide a loan participation and guarantee 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. Loans may range from $5000 to $1,000,000 and must be for terms of one year or less.
INVESTMENT PROGRAMS
Venture Capital Match Program
Provides for a match investment for qualified Louisiana venture capital funds. The fund must have at least $5 million of private investment. LEDC may match funds on 1 LEDC dollar for each 2 of private capital up to an LEDC maximum or $5,000,000.
Minority Venture Capital Match Program
Provides for a match investment for qualified minority venture capital funds. The fund must have at least $250,000 of private investment for which LEDC may invest $1.00 for every $2.00 of private capital up to $2.5 million.
Venture Capital Co-Investment Program
Provides for a co-investment in a Louisiana business of up to one-fourth of the round of investment, but not more than $500,000, with any qualified venture capital fund with at least $7.5 million in private capital. The venture capital fund may be from outside of Louisiana.
Louisiana Seed Capital Program
Provides matching or co-investment funds, which with other capital provided by a Louisiana -based fund, will be used exclusively to provide the seed investment needed to move a Louisiana small business out of the theoretical stage of development on course to commercial production. The candidate company must not be a retail or professional enterprise. The applicant fund must be Louisiana based, organized for profit, have three years experience in managing the investments of other parties, and have raised a minimum of $250,000 for a co-investment project or $500,000 for a matching fund request.
BIDCO Investment Program
Provides for a match or co-investment in certified BIDCOs. BIDCOs are state-chartered, non-depository alternative financing sources for small businesses. BIDCOs frequently provide equity and subordinated debt financing to new and growing companies, as well as to companies requiring turnaround assistance. A BIDCO must have at least $1 million in private capital. LEDC may match the investment $1.00 for $2.00 of private capital up to $2.5 million. Co-investments are considered on a project by project basis and cannot exceed 33 percent of the total investment.
Specialty BIDCO Investment Program
Provides for a match or co-investment in certified Specialty BIDCOs. Specialty BIDCOs are BIDCOs established with a particular focus on assisting disadvantaged businesses and businesses located in impoverished and economically disadvantaged areas. The BIDCO must have at least $250,000 in private capital. LEDC may match the investment $1.00 for every $1.00 of private capital up to $2.5 million. Co-investments are considered on a project by project basis and cannot exceed 50 percent of the total investment.
WORKFORCE PROGRAM
Workforce Development
Provides funding for customized workforce training programs, if all qualifications are met, in order to improve the competitiveness and productivity of Louisiana 's workforce and business community and to assist Louisiana businesses in promoting employment stability. Louisiana companies expanding within the state by an additional location in a new area, existing Louisiana businesses that have been operating less than three years and companies located outside of Louisiana locating a facility within the state. The expansion of an existing Louisiana company, by the addition of a new technology or product line, can be considered. Minimum of 10 net new jobs must be created unless upgrade training is involved. Upgrade training must be provided to a minimum of 10 full-time permanent employees. Pre-employment and/or on-the-job training are eligible.
