The Small Business Loan Guaranty Program (SBLGP) facilitates capital accessibility by providing guarantees to banks and other financial institutions on their loans to Louisiana-based small businesses to help with their business development or expansion needs. A loan guaranty is not a direct loan or grant; rather, it helps facilitate the access to capital for small business owners that are having trouble qualifying for a traditional business loan. If a bank is unwilling to lend money due to high risk or strict credit policies, a state guarantee may significantly reduce the bank’s risk without compromising its usual lending requirements.
- Maximum Guaranty: 80% or $1.5 million max guaranty
- Minimum Equity Requirement: 15%
- Quick Turnaround: for guaranty amounts <$500,000
- Guaranty Fee: 0% to 2% of guaranteed amount (determined by risk)
For more information about the SSBCI Small Business Loan Guaranty Program, download the brochure or visit the Frequently Asked Questions.
*Please note: SSBCI has been authorized for seven years, and this site will be continuously updated as necessary. To receive email updates about the latest SSBCI news and information, along with updates on other programs and services offered by LED for small businesses, click here. If you have a question for the Louisiana SSBCI team, email LEDSSBCI2@la.gov.
- Authorized to conduct business in Louisiana and maintains an office in Louisiana
- Small businesses with 500 employees or less
- For loans of $100,000 or less, must be at least one new permanent job created or one retained job
- For loans over $100,000, must be at least two new permanent jobs created or two retained jobs
- Eligible business purposes include, but are not limited to, start-up costs, working capital, business procurement, franchise fees, equipment, inventory, as well as the purchase, construction, renovation or tenant improvements of an eligible place of business that is not for passive real estate investment purposes. The definition of business purpose excludes activities that relate to acquiring or holding passive investments such as commercial real estate ownership, the purchase of securities; and lobbying activities as defined in Section 3(7) of the Lobbying Disclosure Act of 1995, P.L. 104-65, as amended.
Ineligible Businesses and Purposes
- Restaurants, grills, cafes, fast food operations, motorized vehicle, trailer, curb-side, sidewalk or street vendor food operations that have been in business less than 2 years
- Bars, saloons and other businesses established for the principal purpose of selling or distributing alcohol
- Gaming or gambling
- Pyramid sales
- Financial services
- Speculative real estate
- Owner to owner buyouts
- Recreational park, theme park, amusement park or camping facility
- A business engaged in activities that are prohibited by federal law to include direct and indirect marijuana businesses.
All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.
- View the Titles of the Louisiana Administrative Code
- Rules for the SSBCI Loan Guaranty ARPA 2021 can be found in Part VII, Subpart 1, Chapter 5.
- Download the Loan Guaranty Application.
- Contact an LED Preferred Lender (see list below) or any insured bank, insured credit union or insured community development financial institution of your choosing to inquire about applying for a business loan using the Small Business Loan Guaranty Program.
- Submit the lender’s loan application and provide any supporting application documents requested.
- Lender will contact LEDC for qualification and submit a complete application, financial analysis (to include but not limited to collateral, equity and cash flow), proposed structure and commitment.
- LEDC staff will evaluate the loan application, review the bank’s credit analysis and then make recommendations to the appropriate LEDC approval body.
- The lending institution and applicant will be notified of the loan guaranty decision after review of the application packet by the appropriate LEDC committee/board.
LED Preferred Lenders
Any insured bank, insured credit union or insured community development financial institution in the State of Louisiana may participate in the SSBCI Small Business Loan Guaranty Program by formally opting into the program. LED Preferred Lenders have taken additional steps to demonstrate that they meet all eligibility requirements and have an active interest in Louisiana SSBCI loan programs. To date, the following financial institutions have qualified for LED Preferred Lender status:
Contact: To be determined
Contact: To be determined
Contact: To be determined
SSBCI Contact: William Handy
SSBCI Contact: Randy S. Vicknair
SSBCI Contact: Robin Keelen
Upon completion of the preferred lender process, participating lender names, points of contact and website links will be posted here. If you are interested in becoming an SBLGP preferred lender, please email LEDSSBCILoanGty@la.gov or complete the online application here.