FINANCING SOURCES AND FINANCIAL
ASSISTANCE
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Small Business Administration |
USDA Rural Development Revolving Loan
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Tri-District Development Corporation
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Red River Valley BIDCO, Inc. |
Bossier City Micro Loan Program |
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City of Shreveport Business Loan Program
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Minden Rural Business Enterprise Loan
Program |
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Louisiana Economic Development
Corporation |
Louisiana Department of Agriculture
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Venture Capital |
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R&D Grants/Contracts |
CDC
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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 up to 90% of the loan in the
event of a loan default depending on the
SBA Loan Program.
http://www.sba.gov/
SBA
Guaranteed 7(a) Loan
Available to most start-ups and small
businesses. For those applicants that
meet the SBA's credit and eligibility
standards, the Agency can guaranty up to
85 percent of loans of $150,000 and
less, and up to 75 percent of loans
above $150,000. This standard applies to
most variations of the 7(a) Loan
Program. Loans general range from 7
years (working capital) to 25 years
(real estate and equipment). SBA's 7(a)
Loan Program has a maximum loan amount
of $2 million dollars. SBA's maximum
exposure is $1.5 million. Thus, if a
business receives an SBA guaranteed loan
for $2 million, the maximum guaranty to
the lender will be $1.5 million or 75
percent. SBAExpress loans still have a
maximum guaranty set at 50 percent.
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/financialassistance/prospectivelenders/7a/
SBA 504
Program
Available to businesses with less than
$7.5 million net worth, and average
income of less than $2.5 million over
past two years. Long-term fixed asset
loans up to 20 years, made by
combination financing of SBA backed
Certified Development Corporations (CDCs)
and banks. Rates based on current
Treasury issues plus guarantee fees of
about 3%. The CDC=s
loan portion cannot exceed 40% of a
project. Maximum SBA debenture
supporting the loan can be up to $1.35
million. Must be used for fixed assets,
and must create one job for every
$50,000 of CDC=s
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/new/sfinser.htm#Investment
SBA
International Trade Loan Programs
SBA=s
Export Working Capital Program (EWCP)
loans are targeted for businesses that
are able to generate export sales and
need additional working capital to
support these sales. The EWCP loans can
also be used to even out cash flow when
exporters have negotiated longer sales
terms and cannot carry the resulting
receivables with their own working
capital. The EWCP loan can be a
short-term loan for a single contract or
in the form of a line of credit that
supports ongoing export sales for a
period of 12 months. May not be used to
refinance existing debt. Contact: For
SBA export loan information, call the
Houston Export Assistance Office at
(817) 310-3749; For EXIM Bank loan
information, call the Dallas Export
Assistance Office at (817) 310-3749,
http://www.sba.gov/smallbusinessplanner/plan/getready/SERV_EXPORT.html
Community
Express Very Small Business Loans
Available to small businesses and
start-ups that have are already in
business. Provides between $5,000 and
$25,000 for working capital. Loan is
made on basis of business owner=s
credit score and credit reports.
Repayment over 7 years. Interest rate:
prime plus 4.75%. Contact:
Metro/Regional Business Incubator, (318)
671-1050,
http://www.cdconline.org/New/saretcincubator.htm
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USDA
Rural Development Revolving Loan Program
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) 632-2922,
www.cdconline.org/new/sfinser.htm#USDA
Several
communities in Northwest Louisiana also
have Revolving Loan Programs, including:
Tri-District
Development Corporation (TDDC)
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/new/sfinser.htm#Tri
Red
River Valley BIDCO, Inc.
The Red
River Valley BIDCO, Inc. is a business
and industry development corporation
administered by The CDC. 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/new/sfinser.htm#BIDCO
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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
startup 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
Community Development.
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.
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.mindenchamber.com/
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Louisiana
Economic Development Corporation (LEDC)
LEDC
offers several 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
B
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. Contact: (225)
342-5676,
Small Business Loan Program
Micro
Loan Program
B
provides loan guarantees and
participations to banks that fund loans
ranging from $5,000 to $50,000 to
Louisiana small businesses. Contact:
(225) 342-5676,
Micro Loan Program
Contract
Loan Program
B
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.
Contact: (225) 342-5676,
Contract Loan Program
Louisiana
Department of Agriculture
For
companies involved in processing
Louisiana agriculture and forestry
products, the Louisiana Department of
Agriculture offers assistance by linking
agricultural/forestry related businesses
with financial resources (including
loans and grants), identifying raw
material supplies and directing such
entities to various state-sponsored
business incentives. Contact: (225)
922-1277,
LDAF
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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 venture capital
organizations.
Louisiana Fund
I
B
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)
615-8905,
www.louisianafund.com/
Source Capital
Corporation
B
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
B
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,
http://www.stonehengecapital.com/
CapitalOne
Southcoast, Inc.
B a
wholly owned subsidiary of Capital One
Financial Corporation, CapitalOne Southcoast
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,
Southcoast
BizCapital BIDCO
B
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
B UPS
Capital combine financial services with
other UPS capabilities to provide the
expertise and resources for companies to
enhance their competitive advantage and
expand their businesses by leveraging the
supply chain
B flow
of goods, information, and funds
B
through a global service provider
B
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)
B
Competitive awards. Available only to small
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 degree of innovation, technical
merit, and future market potential.
Small Business
Technology Transfer (STTR)
B
Competitive awards. Available only to small
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 degree of innovation,
technical merit, and future market
potential. Contact: Ark-La-Tex Regional
Export & Technology Center, Inc., (318)
671-1050,
http://cdconline.org/New/saretcincubator.htm
Note: Information on the SBIR and STTR
program also may be accessed through:
http://www.zyn.com |
