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Louisiana Loan Portfolio Guaranty Program
Source:
opportunitylouisiana.com
- Apr 7, 2020
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 read all details, please click HERE.
Programa de préstamos de Louisiana creado para pequeñas empresas.
To read the press announcement, please click HERE.
General Questions, please email: LEDSmallbizloans@la.gov
FAQs
Q: Who is eligible to apply for the program?
A: For-Profit small businesses domiciled in Louisiana which employ less than 100 employees, and have been impacted by COVID-19.
Q: What types of businesses are not eligible to participate in the program?
A: Unless otherwise engaging in essential activity as provided by Proclamation Number 33 JBE 2020 (https://gov.louisiana.gov/assets/Proclamations/2020/modified/33-JBE-2020-Public-Health-Emergency-COVID.pdf), ineligible businesses are those engaged in gaming, non-profit organizations, real estate developers, pawn shops, pay-day loans, lending and investment concerns, or speculative activities.
Q: Does the borrower initially contact the bank or lending institution to apply for a loan?
A: The applicant/borrower is required to contact the bank or lending institution directly to apply.
Q: Are there any program fees?
A: There are no program fees.
Q: How long does the process take?
A: The specific length of time is determined by the loan amount and the approving lending institution, but is expected to be an expedited process.
Q: is there a deadline to apply?
A: Applications will be accepted by banks until April 30, 2020.
Q: Is there a maximum loan amount?
A: The maximum loan amount is $100,000.
Q: What types of financing are eligible in the Louisiana Loan Portfolio Guaranty Program?
A: Non-Revolving Lines of Credit
Term Loans
Q. How long do I have to pay the loan back?
A: The term of the loan can range from 1 to 5 years.
Q. How can I use the loan funds?
A: 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 a 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.
PARTICIPATING BANKS
Please continue to check back for participating banks as these are being added daily.
NORTHEAST
Community Bank of Louisiana; Carl Thibodeaux, cthibodeaux@cbofla.bank
Homeland Federal Savings Bank: Robert Frazier, bfrazier@homelandfsbank.com, 318-649-6124
NORTHWEST
Citizens National Bank, N.A.: Daniel Keeton, dkeeton@citizensnb.com, 318-698-8527
CENTRAL
SOUTHWEST
Bank of Commerce and Trust Company; Tom Trahan, ttrahan@bankofcommerceandtrust.com, 337-785-3321
Rayne Building and Loan Association; Claire Benoit, claireb@raynebuildingloan.com, 337-334-7535
ACADIANA
St. Landry Bank & Trust: Lyle Brignac, lyle@stlandrybank.com, 337-948-2443
St. Landry Homestead Federal Savings Bank; Kathy LeJeune, klejeune@stlandryhomestead.com, 337-948-3033
CAPITAL
Liberty Bank; Tracey Hunter, thunter@libertybank.net, 504-240-5154; Ann Duplessis, aduplessis@libertybank.net, 504-240-5182
Pelican Credit Union; Chandra Foster, cfoster@pelicanstatecu.com, 225-408-6282
SOUTHEAST
BAYOU
Category: General Business
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