Tell me about LED’s Loan Portfolio Guaranty Program

From ledbizloan.com

UPDATE: This program expired on December 31, 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.

All small businesses employing under 100 workers are eligible, including day cares, farmers and fishermen. We especially encourage Main Street businesses such as restaurants to apply. Ineligible businesses are those solely engaged in gaming, non-profit organizations, real estate developers, pawn shops, pay-day loans, lending and investment concerns, or speculative activities.

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 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.

Eligible small business owners may apply to one of the local banks and credit unions that have agreed to participate in this program.

Click here to find a participating bank.

For more information, you may contact the LED hotline at 833.457.0531. For general questions, please email LEDSmallbizloans@la.gov.

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