La. will get up to $113M for small business

On Tuesday, the U.S Treasury announced it has approved Louisiana’s application for up to $113 million in federal support for small business owners and entrepreneurs as part of the $10 billion State Small Business Credit Initiative.

SSBCI was first established in 2010 as a way for the federal government to help states support small businesses that were credit-worthy but unable to access capital they need to expand and create jobs. The American Rescue Plan Act of 2021 reauthorized and expanded SSBCI to promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic.

“This award of up to $113 million is significant news for our entrepreneurs and small business owners in Louisiana, especially in communities that have historically struggled to attract business capital and investment,” Gov. John Bel Edwards said. Louisiana Economic Development will work with participating equity funds and financial institutions to disburse SSBCI funds via Louisiana’s five small business support programs:

--Venture Capital (LVCP) and Seed Capital (LSCP), which provide equity support for small businesses by investing as a limited partner to create and grow start-up businesses.

--Micro Lending (MLP), which establishes a revolving loan fund with qualifying lenders to assist very small businesses with start-up or expansion financing needs.

--Collateral Support (CSP) and Small Business Loan Guaranty (SBLGP) programs, which establish pledged collateral accounts where a shortfall may exist, or provide a state guarantee to reduce risk for business development or expansion financing.