LED Growth Network: Because things are so fluid, I am documenting the below information as accurate as of 8:00am on April 2, 2020.
Yesterday, LED announced a new Loan Portfolio Guaranty Program (LPGP). Louisiana businesses impacted by COVID-19 and with less than 100 employeesmay be eligible for loans of up to $100,000. Loans will require no payments (or bear any interest) for first six months and carry below-market interest rates not to exceed 3.5% (possibly less depending upon the lending institution). The LPGP will supply capital to create a loan guaranty fund of up to $50 million, which LED would guaranty 20% of the pool allocated to each participating bank.
To participate in this program, you must contact one of the participating banks for a streamlined application. Repayment period would be at least one year with repayment terms and acceptable loan amount determined by the participating lending institution.
More information and a current list of participating banks can be found at the below web link. As of the time of this email, there are only 11 participating institutions listed on our site, but I am hearing we expect 30-35 institutions to sign-on and participate. Check back regularly to view additions.
LED Loan Portfolio Guaranty Program (LPGP) – https://www.opportunitylouisiana.com/covid19/led-loan-guaranty-program?v=2
P.S. – I have already received many questions regarding whether this program can be leveraged in conjunction with other federal programs (EIDL, PPP, etc.) or whether that will be deemed a duplication of benefits. My answer at this time is talk to your lending institution. Be careful. Feel free to call me if you have a follow-up question.
In short summary, EIDL (including the up to $10,000 Advance) is done online through the SBA website. PPP and this new LPGP are done through the banks.
Thanks,
Christopher Cassagne
Assistant Director
Small Business Services
Louisiana Economic Development
T 225.342.5882
M 504.715.6091
F 225.342.9390
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