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Collateral Support Program (CSP)

This program provides cash to the lender to pledge to a loan when the borrower has limited collateral. This pledged cash can help secure the loan in the event of a collateral shortfall.

About

View to learn more about Louisiana Economic Development‘s SSBCI Collateral Support Program.

The Collateral Support Program (CSP) was created to assist small business borrowers having difficulty getting approved for loans due to a shortfall in collateral. This program establishes pledged cash collateral accounts with participating lenders to enhance the loan collateral coverage for these borrowers. These collateral deposit accounts are established on an individual loan basis with the intent to mitigate a portion of the bank’s risk, in turn providing financial assistance to small business owners on acceptable terms and conditions. This program is available to any Louisiana insured depository institution, insured credit union or CDFI.

Maximum Loan Amount: $1 million
Maximum Collateral Support Amount: $250,000
Minimum Equity Requirement: 10%