LEDC ASSISTANCE OFFERED Loan guarantee or participation. The guarantee is a guarantee of loss to the lender.
ELIGIBLE APPLICANTS Louisiana businesses as defined by SBA.
SIZE LIMIT PER PROJECT (LEDC PORTION) $5,000 minimum $50,000 maximum (guarantee) $25,000 maximum (participation)
PERCENT OF PROJECT COST Guarantee - no more the 80% of loans up to $62,500. Participation - up to 50% (not to exceed $25,000)
USE OF FUNDS Guarantee - fixed assets; equipment or machinery; and lines of credit for accounts receivable and/or inventory. Participation - fixed assets; equipment or machinery. NOTE: Debt restructure is limited to no more than 10% of loan request.
COLLATERAL COVERAGE Minimum of $1.00 of collateral for each $1.00 of loan.
INTEREST RATES Guarantee - Up to 4% above New York prime at either a fixed or variable rate. Participation - 1% above the rate for a U.S. Treasury security of equal duration.
TERM Term set by bank with LEDC concurrence, but in no case greater than 5 years.
FEES LEDC will charge a guarantee fee of up to 2% of the guarantee amount. $100 non-refundable application fee.
FOR MORE INFORMATION CONTACT: St. Tammany Economic Development Foundation 21489 Koop Drive, Suite 7, Mandeville, LA 70471 Phone: 985-809-7874 Fax: 985-809-7596
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