Small Business Administration

The SBA offers several types of loans to prospective small business owners: loans made by private lenders (usually banks) that are guaranteed by the SBA. While the SBA is not a bank, it does have an important function in the commercial lending market, extending guarantees or participation when a bank is unable or unwilling to provide the small business’ entire financing by itself. The SBA may guarantee the bank up to 90% on the repayment of the loan in the event of a loan default.

Community Express Very Small Business Loans – Available to small businesses and start-ups that have are already in business.  Provides between $5,000 and $50,000 for working capital.  Loan is made on basis of business owner’s credit score and credit reports.  If approved for loan, business plan must be submitted to lender before loan is released.  Repayment over 7 years.  Interest rate: prime plus 4.75%.  Loan application fee and SBA charge to bank must be paid by applicants if loan is approved.  Contact: Metro/Regional Business Incubator, (318) 671-1050, www.cdconline.org/businessincubator/htm or your local SBDC (see contact information in Business Advice section).

SBA Guaranteed 7(a) Loan – Available to most start-ups and small businesses.  SBA guarantees up to 80% for loans under $100,000 or 75% for loans over $100,000 made by private lender.  Loans range from 7 to 25 years.  Cost includes fixed or variable rate of loan plus guarantee fee and service fee.  Only available if funds from other sources are not available.  Contact: Your bank or visit http://www.sba.gov/services/financialassistance/index.html 

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, made by combination financing of SBA backed Certified Development Corporations and banks. Rates based on current Treasury issues plus guarantee fees of about 3%. CDC loan portion cannot exceed 40% of a project. Maximum SBA debenture supporting the loan can be up to $1 million. Must be used for fixed assets, and must create one job for every $35,000 of CDC 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: (318) 632-2022, www.cdconline.org/Arklatex.htm

SBA International Trade Loan Programs – Available to small businesses engaged in international trade or adversely impacted by competition from imports. Combined effort of the SBA and Ex-Im Bank to support small businesses expanding into export markets. Can be administered under either SBA 504 or 7 (a) programs. Maximum amount guaranteed is $1.25 million consisting of $1 million for facilities and equipment and $250,000 for working capital. 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 for more information on SBA export loans, see http://www.sba.gov/aboutsba/sbaprograms/internationaltrade/index.html

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USDA Rural Development Revolving Loan Program
The Coordinating and Development Corporation (CDC), through its subsidiary, The Ark-LA-Tex Investment and Development Corporation, has joined with the USDA’s Rural Development in making available the Intermediary Relending Program for new and growing businesses in our ten-parish Northwest Louisiana Area. Loans from $10,000 up to $150,000 (75% of project costs) can be financed for projects in rural areas of the parishes served by CDC. The focus of this program is to create or retain jobs. The program supplements private lenders’ efforts by either participating with them on special financing projects or direct loans to borrowers who cannot qualify under the private lenders’ rules. Contact: Ark-La-Tex Investment & Development Corporation, (318) 632-2022, www.cdconline.org/Arklatex.htm 
 

Several communities in Northwest Louisiana also have Revolving Loan Programs, including:
Claiborne Parish:
Homer and Haynesville, Claiborne Chamber of Commerce, (318) 927-3271, www.claiborneone.org/homer/coc/

Red River Parish:
Coushatta-Red River Parish Chamber of Commerce, www.chamber.coushatta.net/index.html  
Sabine Parish:
Sabine Parish Chamber of Commerce, www.sabineparish.com/chamber/index.asp  
Webster Parish:
Cullen: Town of Cullen, (318)994-2263 
South Webster Parish: Minden/South Webster Chamber of Commerce, www.minden.org 
 

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Bossier City Micro Loan Program
This loan program provides up to $15,000 for fixed asset and/or working capital loans for start-up and existing small businesses. Loans must be used to create and/or retain of jobs for low and moderate income residents. Loans are available only to qualified for-profit small businesses located within the Bossier City limits. Contact: City of Bossier City, Community Development Department, (318) 741-8560, www.bossiercity.org , click on the Community Development link.

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City of Shreveport Business Loan Program
The City’s loan program provides long-term, low-interest rate financing to assist qualified for-profit small businesses. Loans are intended to stimulate job growth, retain existing jobs, provide management training, and increase general business activity. Types of eligible activities include acquisition of land and building; purchase of machinery and equipment; construction/renovation of new or existing facility; some business start-up costs, and limited working capital. Contact: Community Development Department, (318) 673-7500 www.ci.shreveport.la.us/dept/cd/busloans.htm

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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

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Minden Rural Business Enterprise Loan Program
The Minden/South Webster Chamber of Commerce offers loans to businesses through their Rural Business Enterprise Loan program. Maximum loan amount: $200,000. For more information contact: Minden/South Webster Chamber of Commerce, (318) 377-4240, www.minden.org   

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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/Affiliates.htm#Tri 

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Red River Valley BIDCO, Inc.
The Red River Valley BIDCO, Inc., a business and industry development corporation, is an affiliate of The Coordinating & Development Corporation. A for-profit business and industry development corporation, the RRV BIDCO supplements private lenders’ efforts by either participating with them on special financing projects or direct loans to borrowers who cannot qualify under a private lender’s rule. Maximum loan amount is $1 million. Contact: (318) 632-2022, www.cdconline.org/Affiliates.htm#RED%20RIVER%20VALLEY%20BIDCO,%20INC

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Louisiana Economic Development Corporation (LEDC)
LEDC offers a variety of loan guarantee programs. 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. Programs available through LEDC include:

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% of the loan amount, not to exceed a maximum of $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 – provides for a 1% to 4% interest rate reduction on a maximum 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.

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.

Exim Bank City/State Program – LEDC has a relationship with the U.S. Export-Import Bank in Washington, D.C. Under this program, LEDC facilitates export working capital loans for small Louisiana businesses. Contact: (225) 342-5675, www.led.state.la.us/louisiana-businesses/business-resources/financial-incentives-.aspx 

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Louisiana Department of Agriculture
For companies involved in processing Louisiana agriculture and forestry products, the Louisiana Department of Agriculture offers several loan guaranteed loan programs. Contact: (225) 922-1277,  www.ldaf.state.la.us

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Louisiana Venture Capital/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.

Louisiana Angel Network – The Louisiana Angel Network (LAN) is a newly-formed Louisiana non-profit corporation that promotes entrepreneurial growth by bringing together a network of accredited investors interested in potentially making private equity, early-stage investments into Louisiana-based Entrepreneurial Businesses. Typically, angel-round funding is defined by a company’s need for anywhere from $50,000 up to around $2 million of capital in order to get to the next level. Contact: (318) 746-8430, http://louisianaangels.angelgroups.net/58080_58081.html

Louisiana Fund I – Louisiana Fund I is an early stage venture capital fund focused on the identification of investment opportunities emanating from research universities and other organizations in the state of Louisiana. Contact: (225) 927-3368 or (318) 518-5553,   www.louisianafund.com 

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

 
Capital One Southcoast, Inc. – a wholly owned subsidiary of Capital One Financial Corporation, Capital One South coast is a New Orleans-based regional investment bank.  The firm's primary lines of business are equity research, debt and equity sales and trading, and corporate finance.  Established companies preferred.  Contact: (800)-666-9174, www.capitalone.com/bank/commercial/southcoastcapital/?id=natlOnce

BizCapital BIDCO – BizCapital lends capital mostly to small to medium sized companies. The company funds its own loans and specializes in Asset Acquisitions, Start-Ups, Working Capital, and Business Expansion. Certified SBA and USDA Lender. 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: (860)727-0700, www.upscapital.com 

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R&D Grants/Contracts for Technology-Based Companies

Small Business Innovation Research Grants (SBIR) – Competitive awards. Available only to start-up and existing small 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 small 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  Note: Information on the SBIR program also may be accessed through www.zyn.com

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The Coordinating and Development Corp.
5210 Hollywood Avenue, P. O. Box 37005
Shreveport, LA 71133-7005
Phone: (318) 632-2022
Fax/TDD: (318) 632-2099
E-mail: info@cdconline.org

Copyright 2003, The Coordinating and Development Corporation. Redistribution to all others interested in economic development is strongly encouraged. Please cite The Coordinating and Development Corporation whenever portions are reproduced or redirected.

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