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LOCAL
CONTACTS
Small Business
Administration – SBA offers financial assistance in
the form of partial loan guaranties on small business loans made by
banks and other commercial lenders. When a loan request does not meet
regular lender approval requirements, SBA guaranteed financing can
enable the lender to provide financing the would not otherwise be
available on reasonable terms.
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SBA Guaranteed 7(a) Loan – Available to most
start-ups and small businesses in most industries. The maximum loan
amount is $2 million. The SBA guaranteed portion is limited to $1
million, or 75% or the loan, whichever is less. Loans up to $150,000
may be processed under an expedited procedure known as “LowDoc.”
Under the primary 7(a) loan program, SBA can guarantee 85% of a
loan up to $150,000 and 75% on loans over $150,000. The proceeds
of SBA 7(a) loans may be used for the purchase of real estate; construction,
renovation or leasehold improvements; acquisition of furniture,
fixtures, machinery, and equipment; purchase of inventory; and,
working capital.
Contact: Your local lender or the local SBA Office, (318)
676-3196, www.sba.gov.
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SBA 504 Program – Available to businesses
with less than $6 million net worth, and average income of less
than $2 million over past two years. Long-term fixed asset loans
up to 20 years. Projects are financed by a first mortgage loan from
a private lender (bank), and a second mortgage 504
loan made by a Certified Development Corporations and funds provided
by the small business
concern.
Interest rates are based on current Treasury issues plus a small
spread for administration. CDC
loan portion cannot exceed 40% of a project. Maximum SBA debenture
loan can be up to $1 million.
Must be used for fixed assets, and generally must create one job
for every $35,000 of SBA funds.
Start-ups must contribute 10-20% equity to total start-up. The local
CDC is the Ark-La-Tex Investment
& Development Corporation, a subsidiary of The Coordinating
& Development Corporation.
Contact: Ark-La-Tex Investment & Development Corporation,
(318) 632-2022,
www.cdconline.org/Arklatex.htm.
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SBA International Trade Loan Program – Available
to small businesses engaged in international trade or adversely
impacted by competition from imports. The SBA can guarantee up to
$1,250,000 for a combination of fixed-asset (facilities and equipment)
financing and Export Working Capital Program (EWCP) assistance.
The fixed-asset portion of the loan guaranty cannot exceed one million
($1,000,000.00) dollars and the non-fixed asset portion cannot exceed
$750,000.00. Funds must be used for export related activities. May
not be used to refinance existing debt. Maximum term is 25 years.
Contact: Your local banker or the Shreveport Export Assistance Center,
(318) 676-3064, www.export.gov.
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SBA Export Working Capital Program – Available
to exporters who need short-term working capital to finance transaction-specific
exports. Maximum guarantee is 90% of the loan, generally up to a
maximum of $750,000. Funds must be used for export related activities.
Line of credit generally available for 12 months. Personal guarantee
required.
Contact: Your local banker or the Shreveport Export Assistance Center,
(318) 676-3064, www.export.gov
For
SBA loans such as FastTrac and LowDoc, contact your local banker
or the Shreveport SBA
District
Office, LSUS, College of Business, Room #108, Shreveport, LA 71115,
(318) 676-3196.
Downtown Shreveport
Development Corporation Loan Program – This financial
incentive is designed to provide rehabilitation funds to property
owners and small businesses interested in renovating older buildings
located within Shreveport’s Downtown Development District. Loans
are usually limited to a maximum of $30,000, with a fixed low interest
rate as low as 3.5%.
Contact: Downtown Shreveport Development Corporation, (318) 222-7403,
www.downtownshreveport.com
Tri District
Development Corporation – TDDC provides long-term rate
financing,
both fixed and flexible, to qualified businesses in the twenty-nine
parishes of North Louisiana. Staffed through offices in Shreveport,
Monroe and Alexandria, TDDC provides business development financing for
companies creating long-term permanent employment, primarily in the
rural regions of North
Louisiana.
(Loan types similar to those offered by AIDC.)
Contact: The Coordinating & Development
Corporation,
(318) 632-2022,
www.cdconline.org.
Red River
Valley BIDCO, Inc. – The Red ey BIDCO, Inc., is an
affiliate of The Coordinating & Development Corporation. A fRiver Vallor-profit business and industry development corporation, the RRV
BIDCO supplements private lenders’ efforts by participating
with them on special financing projects or making direct loans to
borrowers who cannot qualify under a private lender's rule. Maximum
loan amount is $1 million.
Contact: Red River Valley BIDCO, (318) 632-2022, www.cdconline.org.
While you may elect to contact the
following state and federal agencies directly, local economic development
agencies are in constant communications with these organizations.
They may be able to answer your questions and/or address your problems
without your experiencing the cost of long distance calls, or the
frustration of being transferred from office to office. The local
agencies include:
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City
of Shreveport’s Economic Development Department |
(318) 673-7515 |
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City
of Shreveport Department of Community Development |
(318) 673-7500
|
|
Greater Shreveport
Chamber of Commerce’s Department of Economic Development |
(318) 677-2512 |
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The Coordinating &
Development Corporation |
(318) 632-2022 |
Louisiana Economic
Development Corporation (LEDC) --
LEDC offers a variety of loan guarantee programs, including the following.
LEDC itself does not make direct loans; you must have a bank that
is willing to loan you the money with the backing of an LEDC guarantee.
- Small Business Loan Program --
This program provides loan guarantees and loan participations
to banks in order to facilitate capital accessibility for businesses.
Guarantees may range up to 75% of the loan amount, not to exceed
a maximum of $1.5 million. Also provided is a loan participation
of up to 40%. The maximum dollar figure for a guaranty or a participation
is $1.5 million. Loan participations of up to 40% are also available.
Applicants must have a business plan and a bank that is willing
to fund the loan.
- Business Linked Deposit Program
– The Linked Deposit program provides for an interest
rate reduction of from 1% to 4% on a maximum loan of $200,000 for
2 to 5 years on term loans that are funded by banks to Louisiana
businesses. Job creation, statistical area employment, and cash
flow requirements for underwriting are all criteria which will effect
the percentage and term of the linked deposit. Applicants should
apply through their lender.
- Micro Loan Program –
This 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 --
This program is 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.
- Ex-Im Bank City/State Program --
Through its relationship with the U.S. Export-Import Bank in
Washington, D.C., LEDC facilitates export working capital loans
for small Louisiana businesses.
Contact: (225) 342-5675, www.led.state.la.us
Louisiana Department
Of Agriculture
--
For companies involved in processing Louisiana agriculture and forestry
products, the Louisiana Department of Agriculture offers the following
financing programs:
- State Market Commission/Loan and
Loan Guaranty Program -- Program is available for an entity
engaged in the marketing, processing, and/or further processing
of Louisiana agriculture products. Program provides a loan or loan
guarantee to a bank, not to exceed 5 years. Funds may be used to
acquire, construct, furnish, equip, purchase or improve any agricultural
plant, operations capital, market development costs, and product
inventories.
- State Market Commission/ Agriculture
Products Processing Linked Deposit Loan Program --
Program
is available for eligible agricultural products processing businesses.
Provides low interest loans to any person to acquire, construct,
furnish, equip, facility purchase or improvements, operating capital,
market development, and product inventories.
- State Market Commission/
Agricultural Production Linked Deposit Loan Program -- Available
for "Eligible Agricultural Products Businesses." Provides
low interest loans to finance the cost of maintaining a farm in
Louisiana.
Contact: (225) 922-1292, www.ldaf.state.la.us
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Revenue
Bonds Funding Programs
Louisiana Tax-Exempt
Industrial Revenue Bonds.
Tax Exempt Private Activity Bonds may be issued by participating entities
(cities, parishes, industrial boards, local public trusts, and other
special authorities) to finance qualified small issue facilities,
exempt facilities, and non-profit 501(c)(3) facilities. At present,
only facilities used in the manufacturing or production of tangible
personal property (including the processing resulting in a change
in the condition of such property) and certain related facilities
qualify for financing.
Contact: Louisiana Public Facilities Authority, (225) 923-0020,
Fax: (225) 923-0021, www.lpfa.com
or Louisiana Community Development Authority, (225) 344-0100,
www.lamunis.org/lcda
Louisiana Taxable Industrial
Revenue Bonds. Private Activity
Bonds, the interest on which is not excludable from federal income
taxation, may be issued by participating entities (cities, parishes,
industrial boards, local public trusts, and other special authorities)
to finance every type of project financeable with tax exempt bonds
and in addition may be issued by certain issuers for any facilities
promoting economic development.
Contact: Louisiana Public Facilities Authority, (225) 923-0020,
Fax: (225) 923-0021, www.lpfa.com
or Louisiana Community Development Authority, (225) 344-0100,
www.lamunis.org/lcda
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Louisiana
Venture Capital Organizations
(and other Financial Organizations)
The information provided under this
category is provided as a courtesy. No endorsement is intended by
the inclusion herein of the following four venture capital organizations.
- Source Capital Corporation
-- Corporate finance,
equity and debt investments. Provides venture capital for seed,
start-up, first stage, second stage, acquisitions, business sales,
debt placement, government guaranteed loans. Minimum investment:
$100,000. Preferred investment: $250,000 to $600,000. Also, Source
Capital’s subsidiary, First Louisiana Business and Industrial
Development Corporation (First BIDCO), has certified lender status
from the SBA to originate SBA 7(a) guaranteed loans.
Contact: (225) 612-2583, www.sourcecap.com
- Stonehenge Capital Corporation
– Venture capital subsidiary of Bank One. Will function
either as originator or investor in deals created by others. Provides
capital for expansions, later stage, mezzanine, leveraged buyouts,
and acquisitions. Minimum investment: $500,000; preferred investment:
$1 million to $2.5 million. Generally, does not work with start-up
companies. Prefers companies with a history of three to five years
of successful sales. Recognized as a Small Business Investment
Company (SBIC) by the SBA.
Contact: (225) 408-3000, www.stonehengecapital.com
- Hibernia Southcoast Capital
– a wholly owned subsidiary of Hibernia Corporation,
Hibernia Southcoast Capital is a New Orleans-based institutional
investment banking boutique. The firm's primary lines of business
are equity research, equity trading, institutional sales and corporate
finance. established companies.
Contact: (800)-666-9174, www.hiberniabank.com
- BizCapital BIDCO –
Provides commercial financing, mezzanine financing, and venture
capital for Louisiana businesses. Capital provided for start-ups,
expansions, leveraged buy-outs, acquisitions, and other business
purposes. Minimum investment $100,000; Preferred investment $1,000,000;
no maximum. Certified SBA Lender. Largest volume SBA lender in Louisiana
(FY 2000) and top SBA minority lender in the State. Venture capital
provided through affiliate Advantage Capital Partners LLC.
Contact: (504) 832-1993, www.biz-capital.com
- UPS Capital –
The goal of UPS Capital is to combine financial services with other
capabilities of UPS to provide the expertise and resources for companies
to enhance their competitive advantage and expand their businesses
by leveraging the supply chain – flow of goods, information,
and funds – through a global service provider – United
Parcel Service. Products and Services include Distribution Finance
(Asset Based Lending and Structured Finance), Business Credit, Global
Trade
Finance, Leasing, and Trade Protection Services.
Contact: (972) 360-2373, www.upscapital.com
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R&D
Grants for Technology Based Companies
- Small Business
Innovation Research Grants (SBIR)
--
Competitive
awards. Available only to start-up and existing technology-based
companies. Eleven participating federal agencies (NASA, NIH, DOD,
EPA, etc.) solicit for R&D proposals and award funding to qualified
businesses. Companies submit proposals in response to specific solicitations.
Agencies make SBIR awards based on small business qualifications,
degree of innovation, technical merit, and future market potential.
- Small Business Technology
Transfer (STTR) -- Competitive awards. Available only to
start-up and existing technology-based companies participating in
cooperative R&D with research institutions. Five participating
federal agencies (NASA, NSF, DOD, DOE, DHHS) solicit for R&D
proposals and award funding to qualified businesses. Companies submit
proposals in response to specific solicitations. Agencies make SBIR
awards based on small business qualifications, degree of innovation,
technical merit, and future market potential.
Contact: Ark-La-Tex Regional Export & Technology Center, Inc.,
(318) 671-1050, www.cdconline.org/businessincubator.htm
or
the Louisiana Technology Transfer Office, (225) 332-5555,
www.ltto.org
Note:Information on the SBIR program
may be accessed through the Internet at: http://www.sbaonline.sba.gov/hotlist/sbir.html.
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