SMALL BUSINESS LOAN PROGRAM

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) $50,000 minimum $1,500,000 maximum PERCENT OF PROJECT COST Guarantee - no more the 75% of loans up to $650,000; no more than 70% of loans up to $1,100,000; or no more than 65% of loans up to $2,300,000. Participation - up to 40%. USE OF FUNDS Guarantee - fixed assets; equipment or machinery; lines of credit for accounts receivable and/or inventory. Participation - fixed assets; equipment or machinery. NOTE: Debt restructure is limited to 25% of loan request, but may be increased to 35% with a reduced guarantee percentage. EQUITY REQUIRED Start-ups - 10% - 20%* Acquisitions - 10% - 20%* Expansion - 15% * Additional fees are accessed to equity less than 20% COLLATERAL COVERAGE Minimum of $1.00 of collateral for each $1.00 of loan. INTEREST RATES Guarantee - Up to 2.5% above New York prime at either a fixed or variable rate. Participation - 1% - 2.5% 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 20 years. FEES LEDC will charge a guarantee fee of up to 4% 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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