Scroll

Small Business
Loan Guaranty Program

No Interest + No Payments for the First 6 months

Below Market Interest Rates of no more than 3.5%

We know your business is hurting.

Time and again, Louisianans reach out and help their neighbors in times of crisis. The Loan Portfolio Guaranty Program is an example of that service. Governor Edwards has received commitments from banks and credit unions across the state that have agreed to help Louisiana’s small businesses recover from the COVID-19 crisis.
(Programa de préstamos de Louisiana creado para pequeñas empresas)

View Program Details

We’re here to help.

What is the Louisiana Loan Guaranty Program?

The Louisiana Loan Portfolio Guaranty Program, or LPGP, is a partnership of Louisiana Economic Development (LED), which will provide a loan guaranty fund; the Louisiana Bankers Association (LBA), whose participating members will offer the loans; and the Louisiana Public Facilities Authority (LPFA), which will administer the program.

The purpose of the LPGP is to provide loans to Louisiana small businesses in response to COVID-19. At this time, LED recognizes small business needs are immediate, and if there isn’t a timely response, the State risks losing a foundational element of its economy. In collaboration with the LBA and LPFA, LED has worked with the banking community to provide access to capital to small companies that may experience (have experienced) a sudden drop in revenues due to lost business caused by the COVID-19 pandemic. The State through LED is guaranteeing a portion of each participating bank’s loan.
To view program details, click HERE.
(Programa de préstamos de Louisiana creado para pequeñas empresas)

View Press Release

Who is this program for?

All small businesses employing under 100 workers are eligible, including day cares, farmers and fishermen. We especially encourage Main Street businesses such as restaurants to apply. Ineligible businesses are those solely engaged in gaming, non-profit organizations, real estate developers, pawn shops, pay-day loans, lending and investment concerns, or speculative activities.

Farmers  Restaurants  Fishermen

Common Questions

How can I use the loan funds?

The program is designed to help business owners maintain the continuation of operations as a result of COVID-19. Suggested uses for the loan are to maintain employee payroll for an 8-week period at minimum payroll levels at the time of application for the loan, as well as to maintain continuance of operations within COVID-19 executive orders, proclamations, and relevant state agency guidance. The need for the loan and use of proceeds must be directly related to the economic injury caused by the COVID-19 pandemic.

How do I apply?

Eligible small business owners may contact LED at either LEDSmallBizLoans@la.gov or call 833-457-0531 to inquire about banks participating in the program.

Email LED

Who is eligible to apply for the program?

For-Profit small businesses domiciled in Louisiana, which employ less than 100 employees and have been impacted by COVID-19.

What types of businesses are not eligible to participate in the program?

Ineligible businesses are those solely engaged in gaming, non-profit organizations, real estate developers, pawn shops, pay-day loans, lending and investment concerns, or speculative activities.

Does the borrower initially contact the bank or lending institution to apply for a loan?

The applicant/borrower may email LED at LEDSmallBizLoans@la.gov or call 833-457-0531 to inquire about banks participating in the program.

Are there any program fees?

There are no program fees.

How long does the process take?

The specific length of time is determined by the loan amount and the approving lending institution, but is expected to be an expedited process.

Is there a deadline to apply?

Applications will be accepted by banks until December 31, 2020.

Is there a maximum loan amount?

The maximum loan amount is $100,000.

Is there a minimum loan amount?

Yes, the minimum loan amount is $10,000.

How long do I have to pay the loan back?

The term of the loan can range from 1 to 5 years.

If I participate in this program, will I be ineligible to participate in the federal PPP or EIDL programs?

Guidance from the SBA indicates that participation in this program will not exclude you from eligibility for the PPP or EIDL program as long as loan funds are not used for the same expenditures.

Participating Banks

Please contact LED at either LEDSmallbizloans@la.gov or call 833-457-0531 to inquire about banks participating in the program.  Two application worksheets are being provided for your use as the participating banks will require the worksheets to be completed by all applicants in addition to their respective loan documents.

Exhibit A-1Exhibit A-2

Interested small business owners may get started by contacting either LEDSmallbizloans@la.gov or call 833-457-0531 to inquire about banks participating in the program and overview of the application process.

Lenders interested in participating should contact LED by calling Business Development Manager Kelly Raney at 225.342.0411 or by emailing her at Kelly.Raney@La.Gov.