Essential info for banks, other financial institutions and equity funds participating in – or seeking to participate in – the Louisiana SSBCI program

Download the SSBCI Loan Application

SSBCI is not a government grant program that provides funds directly to businesses. It is an economic stimulus program that uses federal dollars to leverage private investment in existing and start-up businesses. 

LED acts as a bridge or conduit between the U.S. Treasury, financial institutions and the entrepreneurs and small businesses they serve. 

The program’s ultimate success relies on the active participation of program providers like you.

Help LED better support your efforts by emailing your general program questions to We’ll continuously update this page with answers to your frequently asked questions.

Micro Lending Provider FAQs

Seed and Venture Capital Provider FAQs

  • Does the equity provider use its internal application process or does LED provide application forms? Caret Down

    The participating providers will use their own process to perform due diligence. Providers interested in participating in either the Louisiana Seed Capital Program or the Louisiana Venture Capital Program must complete the RFQ process and be approved by the Louisiana Economic Development Corp board.

  • How are start-ups defined? Caret Down

    Typically, start-ups are defined as a business in the early stages of operations (less than three years). A listing of eligible and ineligible business types can be found in the LED SSBCI program rules.

  • What types of business activities are ineligible? Caret Down

    Ineligible business activities in the LED SSBCI programs may include, but are not limited to:

    • Speculative real estate
    • Lending activities
    • Pyramid sales
    • Activities prohibited by federal law or local jurisdiction
    • Gambling
    • Bars
    • Refinancing
  • What is an acceptable eligible business purpose? Caret Down

    According to the U.S. Treasury SSBCI Capital Program Guidance, an acceptable eligible business purpose includes, but is not limited to, start-up costs, working capital, business procurement, franchise fees, equipment or 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.

  • What types of businesses are eligible to participate? Caret Down

    Eligible business types that may qualify for the LED SSBCI programs are entities that have an eligible business purpose and are structured as one of the following:

    • For-profit corporation
    • Limited liability company
    • Partnership
    • Joint venture
    • Sole proprietorship
  • What is a Socially & Economically Disadvantaged Individual (“SEDI”) owned business? Caret Down

    As defined by the U.S. Treasury SSBCI Guidance, SEDI is any of the following:

    • Business enterprises that certify that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society; gender; veteran status; limited English proficiency; physical handicap; long-term residence in an environment isolated from the mainstream of American society; membership of a federally or state-recognized Indian tribe; long-term residence in a rural community; residence in a U.S. territory; residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or membership of another “underserved community” as defined in Executive Order 13985;
    • Business enterprises that certify that they are owned and controlled by individuals whose residences are in CDFI Investment Areas, as defined in 12 C.F.R. § 201(b)(3)(ii);
    • Business enterprises that certify that they will operate a location in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii); or
    • Business enterprises that are located in CDFI Investment Areas, as defined in 12 F.R. § 1805.201(b)(3)(ii).


  • How is Very Small Business (VSB) defined? Caret Down

    As defined by the U.S. Treasury SSBCI Guidance, a VSB is a business with fewer than 10 employees at the time of the transaction and includes independent contractors and sole proprietors.