Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 9 - Micro Loan Program › Chapter 76 - SSBCI Micro Lending Program ARPA 2021 › Section VII-7607 - Eligibility/ Ineligibility for Participation in This Program

Current through Register Vol. 50, No. 6, June 20, 2024
A. This Program is
				  for loans (including lines of credit) for an eligible business purpose, having
				  a principal amount of $500,000 or less, to eligible borrowers doing business in
				  Louisiana having 100 employees or less at the time the loan is enrolled in this
				  program. An
eligible business purpose
includes but is not
				  limited to: start-up costs; working capital; business procurement; franchise
				  fees; and acquisition of equipment, inventory, or services used in the
				  production, manufacturing, or delivery of a business's goods or services, or
				  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
eligible business purpose
excludes activities
				  that relate to acquiring or holding passive investments such as commercial real
				  estate ownership for investment or leasing; 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.
B. The loan should be a new extension of
				  credit to the borrower, and shall not be used to support existing extensions of
				  credit, including but not limited to prior loans, lines of credit, or other
				  borrowings that were previously made available as a part of a state small
				  business credit enhancement program; no portion of the loan shall be used for
				  any guaranteed or unguaranteed portion of a Small Business Administration (SBA)
				  guaranteed loan or any other federal loan without prior written consent of the
				  treasury; and SBA guaranteed loans shall NOT be purchased through this
				  program.
C. In connection with the
				  business purpose for the requested loan the applicant/borrower(s) shall create
				  or retain in this State at least one new permanent full-time jobs.
D. In addition to the eligibility and
				  ineligibility provisions provided in the Section, the applicant/borrowers loans
				  and lines of credit in connection with this Chapter shall meet the following
				  criteria:
1. the applicant/borrower(s) shall
				  employ 100 employees or less at the time the loan is enrolled in this Program.
				  The borrower business structure is a for-profit corporation, partnership,
				  limited liability company, limited liability partnership, joint venture,
				  cooperative, non-profit entity with an eligible business purpose as defined
				  above or other entity which is registered and authorized to conduct business in
				  the state of Louisiana that maintain an office in Louisiana.
2. the borrower business structure is a sole
				  proprietor qualified to do business in Louisiana that maintains an office in
				  Louisiana. Small and emerging businesses (SEBs) certified by LED's small
				  business services that maintain an office in Louisiana.
3. small and emerging businesses (SEBs)
				  certified by LED's Small Business Services that maintain an office in
				  Louisiana.
4. small businesses
				  owned by socially and economically disadvantaged individuals (SEDI) that meet
				  the SEDI definition above;
5. small
				  business concerns as defined above for size purposes.