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No Interest + No Payments for the First 6 months
Below Market Interest Rates of no more than 3.5%
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)
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)
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.
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.
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 LEDFor-Profit small businesses domiciled in Louisiana, which employ less than 100 employees and have been impacted by COVID-19.
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.
The applicant/borrower may email LED at LEDSmallBizLoans@la.gov or call 833-457-0531 to inquire about banks participating in the program.
There are no program fees.
The specific length of time is determined by the loan amount and the approving lending institution, but is expected to be an expedited process.
Applications will be accepted by banks until December 31, 2020.
The maximum loan amount is $100,000.
Yes, the minimum loan amount is $10,000.
Non-Revolving Lines of Credit, Term Loans.
The term of the loan can range from 1 to 5 years.
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.
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
