South Central Planning & Development Commission

About

Financing for small businesses isn’t always easy to obtain.  Traditional financing resources may find it difficult to meet individual business development needs.  The Loan Program is a finance program operated by SCPDC and is specifically created to fill the gaps in financing not provided by conventional means such as direct loans or those initiated by local banks.

These funds are designed to link small businesses to financing solutions. We are committed to connecting eligible businesses with comprehensive financing packages, including bank participation loans.

To qualify for this program a business must be:

 ·  For-profit; Non-profit ·  A corporation, partnership, or sole proprietorship ·  Located in one of the participating parishes ·  The program is primarily for existing businesses, but we will consider new businesses being started by proven entrepreneurs with job creation potential.

Our purpose is to assist in the retention and creation of jobs, as well as strengthen and diversify the local economy. The low interest rate and less stringent debt ratio provide us the flexibility to assist small business and accomplish these goals

Loans are available to:

• Purchase, repair or modernize machinery or equipment
• Working capital for specifically defined purposes (inventory, insurance, etc.)
• Professional fees—legal, title search, title insurance, appraisal, accounting, etc.
• Purchase of Real Property
• Small scale construction or renovation (support structures, manufactured or metal buildings, docks, sheds, ect.)

Typical loan participation packages:

·  Independent—Where a borrower has been refused by a local bank and seeks financing for the business project.

·  Participation—Where a borrower’s bank is only able to partially fund the project due to equity/ collateral requirements. The loan program can provide funding to offset collateral shortages and use of funds purposes (working capital, etc.) and make the loan risk acceptable to the bank.

·  Complimentary—Where a borrower does not have enough equity to satisfy bank requirements. The loan program can bridge the gap providing a portion of the funding to supplement the borrower’s funds and make the loan risk acceptable by the bank.