Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 13 - Collateral Support Program › Chapter 91 - SSBCI Collateral Support Program ARPA 2021 › Section VII-9107 - 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
				  $1,000,000 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
				  U.S. 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 job.
D. The following businesses shall be eligible
				  for participation in this program, except for those ineligible businesses and
				  purposes hereinafter shown:
1. small business
				  concerns organized as a sole proprietorship qualified to do and doing business
				  in Louisiana, or either 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. small and emerging businesses (SEBs)
				  certified by LED's small business services that maintain an office in
				  Louisiana;
3. small businesses
				  owned by socially and economically disadvantaged individuals (SEDI);
4. funding requests for any eligible business
				  purpose may be considered, except for the following ineligible businesses or
				  purposes:
a. restaurants (except for regional
				  or national franchises), grills, cafes, fast food operations, motorized
				  vehicle, trailer, curb-side, sidewalk or street vender food operations, and any
				  other business or project established for the principal purpose of dispensing
				  cooked food for consumption on or off the premises that have been in business
				  less than two years;
b. bars,
				  saloons, daiquiri shops, operations for the sale of alcoholic popsicles and
				  other alcoholic food items, packaged liquor stores, including any other
				  business or project established for the principal purpose of dispensing,
				  packaging, or distributing alcoholic beverages;
c. any business or establishment which has
				  gaming or gambling as its principal business;
d. any business or establishment which has
				  consumer or commercial financing or lending activities as its
				  business;
e. any business engaged
				  in pyramid sales, where a participant's primary incentive is based on the sales
				  made by an ever-increasing number of participants;
f. any business engaged in speculative
				  activities that develop profits from fluctuations in price rather than through
				  normal course of trade, such as stock market investments, dealing in
				  commodities futures, wildcatting for oil, and other speculative
				  activities;
g. any business engaged
				  in activities that are prohibited by applicable federal, state or local law in
				  the jurisdiction where the business is located or conducted. (Included in these
				  activities is the production, servicing, or distribution of products that are
				  to be used in connection with any illegal activity, such as but not limited to
				  selling drug paraphernalia or operating a motel that knowingly permits illegal
				  prostitution); this category of business includes direct and indirect marijuana
				  businesses, as defined by SBA Standard Operating Procedures 50 10 6;
				  or
h. funding for the acquisition,
				  renovation, or alteration of a building or property for the principal purpose
				  of real estate speculation, rental, or any other passive real estate investment
				  purposes;
i. funding for the
				  purpose of establishing a park, theme park, amusement park, or camping
				  facility;
j. funding for the
				  principal purpose of refinancing existing debt; a refinancing of a loan
				  previously made to the borrower by the lender or an affiliate of the lender; or
				  a loan made in order to place under the CSP prior debt that is not covered
				  under the CSP and that is or was owed by the borrower to the lender or to an
				  affiliate of the lender;
k. funding
				  for the purpose of buying out any stockholder or equity holder by another
				  stockholder or equity holder in a business; for the purpose of purchasing any
				  portion of the ownership interest of any owner of a business; or for buying out
				  any family member or reimbursing any family member;
l. funding for the purpose of reimbursing
				  funds owed to any owner, including any equity injection or injection of capital
				  for the business's continuance;
m.
				  funding for paying any person to influence or attempt to influence any agency,
				  elected official, officer or employee of a state or local government in
				  connection with lobbying activities, the making, award, extension,
				  continuation, renewal, amendment, or modification of any state or local
				  government contract, grant, loan or cooperative agreement as such terms are
				  defined in
				  31
				  U.S.C. §
													1352;
n. funding for paying any costs incurred in
				  connection with:
i. any defense against any
				  claim or appeal of the United States Government, any agency or instrumentality
				  thereof (including the U.S. Department of Treasury), against the state of
				  Louisiana, or
ii. any prosecution
				  of any claim or appeal against the United States Government, any agency or
				  instrumentality thereof (including the U.S. Department of Treasury), which the
				  state of Louisiana instituted or in which the state of Louisiana has joined as
				  a claimant;
o. funding
				  to be used to pay any delinquent federal or state income taxes, as well as any
				  taxes held in trust or escrow, such as payroll taxes or sales taxes.