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Louisiana Economic Development (LED) – Small Business Loan Guaranty Program (SBLGP)

The Small Business Loan and Guaranty Program facilitates capital accessibility for small businesses by providing loan guarantees to banks and other small business lenders.

About

The program’s purpose is to provide financial assistance by way of loan guarantees, which will help with the development, expansion and retention of Louisiana’s small businesses. The program is administered by Louisiana Economic Development through Louisiana Economic Development Corporation (LEDC).

Loan Amount: $5,000 to $1.5 million
Maximum Guarantee: 75% of loan amount
Minimum Equity Requirement: 15% to 20%
Application Fee: $0
Quick Turnaround: for qualifying loan amounts, typically 7-10 days
Guarantee Fee: 1% to 4% of guaranteed amount

Eligibility:

Must be a domiciled Louisiana small business (as defined by the Small Business Administration)
For loans of $100,000 or less, there must be one new permanent job or one retained job
For loans over $100,000, there must be two new permanent jobs created

With low fees, a streamlined application process and a quick turnaround, the loan guaranty program is an excellent tool to mitigate risk in commercial lending.