Louisiana Awarded $113 Million to Support Small Business Growth
SSBCI increases capital access and promotes entrepreneurship in underserved communities
The U.S. Treasury is set to give a major boost to Louisiana small business owners and entrepreneurs with its December 2022 allocation of up to $113 million from the $10 billion State Small Business Credit Initiative (SSBCI).
Gov. John Bel Edwards designated LED to administer the program via the Louisiana Economic Development Corporation (LEDC). LED is working 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), providing equity support for small businesses by investing as a limited partner to create and grow start-up businesses.
· Micro Lending (MLP), establishing a revolving loan fund to assist very small businesses with start-up or expansion financing needs.
· Collateral Support (CSP) and Small Business Loan Guaranty (SBLGP) programs, establishing pledged collateral accounts where a shortfall may exist, or providing a state guarantee to reduce risk for business development or expansion financing.
Louisiana’s allocation is nearly nine times larger than the $13.2 million it received in the 2010 initiative. The bulk of the $113 million – up to $91.5 million – is allocated to venture capital and seed programs. Disbursement of the full amount is dependent on hitting federal funding benchmarks for very small businesses (VSBs) and socially and economically disadvantaged individuals (SEDIs) whose access to capital may have been limited in the past.
For the latest program developments, including eligibility criteria, rules, application FAQs and provider contact info, visit LouisianaSSBCI.com.