Introduction given to business incentives

“I’ve got 200 employees and am looking at trying to keep my business in Terrebonne Parish,” Gulf Frame Services owner Bobby Bond said regarding business incentives. “Some of this stuff is geared toward smaller businesses [and] I’m looking for export help and doing business around the world.”

Bond was among the approximately 65 business representatives gathered at the Houma-Terrebonne Civic Center Thursday for an introduction to state and local programs available as expansion and hiring incentives.

Hosted by the Terrebonne Economic Development Authority with presentations from Louisiana Economic Development officers, organizers recognized Terrebonne Parish as a growth center in Louisiana and encouraged established business representatives to take advantage of the offerings.

“This is no longer a sleepy town,” LED officer Seth Brown said of Houma and the surrounding area.

A key element of the LED presentation was announced plans for the December rollout of a venture capital program. With this small business loan program, $8 million is being put forward by the state as a five-year fund. With it, $5.1 million is designated for use as a seed program with $1 million invested in a matching investment projects.

A small business loan guarantee program was introduced which provides guarantees and participation to banks in order facilitate accessible capital for businesses. The program provides financial assistance to the expansion and retention of businesses.

Small business guaranteed loans range up to 75 percent of a loan application amount starting at $5,000 and not exceeding $1.5 million. A 15 to 20 percent equity requirement is involved with the guaranteed loan. Loan participations of up to 40 percent are also available.

Eligibility for small business loans defines a small business as “domiciled in Louisiana” with owners or principal stockholders being resident of Louisiana.

Participants were offered an introduction into enterprise zones.

“Anyone who is creating jobs can use this program,” LED officer Marylyn Friedkin said. The exceptions are churches, home businesses or locations where gambling takes place.

Friedkin identified enterprise zones as being focused on job creation and provides Louisiana income and franchise tax credits to businesses hiring at least 35 percent of net, new jobs from target groups which include: high unemployment centers, low income populations or a high percentage of residents receiving some form of public assistance. Creating enterprise zones involves having at least five new jobs added in the first two years of participation.

Benefits include a one-time $2,500 per job credit, and rebates of 4 percent sales and use tax on materials, machinery, furniture or equipment. A 1.5 percent refundable investment tax credit could also be earned by taking on this program.

A technology commercialization credit and jobs program is also available for those businesses that invest in the commercialization of Louisiana technology to create new jobs. Credits are granted for a five-year period. Eligibility specifies that the technology must be created by a Louisiana business and researched by a Louisiana university or college.

A quality jobs rebate is also available for businesses that fall into a target industry or have at least 50 percent of their sales coming from out-of state.

With this, cash rebates provide 5-to 6 percent on annual payroll per certified net new job. Capital expenditures or any investment tax credit should equal 1.5 percent of qualifying expenses.

LED officers said that to qualify for a financial jobs incentive program, new fulltime employees are designated as those working at least 35 hours a week. Some tax credits are available for part-time employees provided they work 20 hours every week for 26 consecutive weeks.

Details of LED business incentives can be secured at LouisianaForward.com or by calling (800) 450-8115.

TEDA Business Retention and Expansion Director Katherine Gilbert completed the seminar by introducing participants an Innovation Block Technical Assistance Program.

“In this new program there are two sides to it,” Gilbert said. “The first side is the technical assistance. That is where we provide educational opportunities on a number of issues. We also do business plans, development and coaching. One of our goals is to help you get to the point where you can go to the bank [as an expansion or startup] and get a loan on your own.”

The TEDA program is funded with a Community Development Block Grant and offers the complementing of a bank loan for qualified businesses or offer loans without participation of a financial institution.

Loan amounts can be between $50,000 and $250,000 based on criteria involved.

“We are looking for projects that have just one or two hurdles to overcome,” Gilbert said. “Interest rates range from 1 to 4 percent on these loans. You need to visit your banker first and try to get independent funding. If you can’t, this is where this program can come in.”

Another program introduced during this session was the Louisiana State Trade and Export Promotion. “This is an export program aimed at helping all companies to get into exporting and raise the value of exporting coming out of the area,” Gilbert said.

The foreign trade program is designed to address foreign trade missions. It is characterized as a matching scholarship program. Training workshops are also offered with this program.

“I think it is a good start for Terrebonne Parish to get this information out front,” Edison Chouest Senior Vice President Roger White said at the completion of the business incentive program.

“I am happy to see the diversity of businesses that were here,” TEDA Board Commissioner Katie Sims said. “We had small business, micro-enterprise, large business and we are working toward getting them back together and doing some round-table discussions, defining business size and moving them toward success.”