TEDA launches new loan program

Small businesses are the backbone of any economy, and the Terrebonne Economic Development Authority (TEDA) is pleased to be presenting an expanded initiative aimed at helping start and grow small businesses.

The Innovation Loan and Technical Assistance Program (ILTAP), funded through hurricane-recovery dollars from the State of Louisiana’s Office of Community Development, is a two-part program offering a variety of business-assistance services as well as loan funding for existing businesses or startup enterprises in areas affected by Hurricanes Katrina, Rita, Gustav and Ike. The funding was made available utilizing Community Development Block Grant dollars.

Through it, the TEDA staff stands ready to help walk an enterprising entrepreneur through the steps to starting a business; help launch the writing or refining of a business plan and preparing a loan application; address funding barriers; discuss paths to building a resilient and sustainable business; or address other issues through which a company is working.

In support of the program, TEDA is also seeking professional service providers, accountants, attorneys, public relations and marketing firms, web-page and technology specialists and others, to work with the program’s client as these needs arise.

The program’s loan funds, in amounts between $50,000 to $250,000, are available for working capital and purchase of equipment, inventory and commercial real estate, including its renovation or new construction. A portion of the funds are reserved for smaller loans ranging from $50,000 to $100,000. Interest rates will range from 1 percent to 4 percent, depending upon the applicant’s credit score.

To be eligible, companies must have less than 100 employees and at least $75,000 annual gross revenue (if open for more than one year). The projects being funded must create a minimum of one new, full-time job, as well as have a supporting business plan and other documentation.

Ineligible uses of funds include residential projects; gaming; speculative purposes; refinancing of existing debt; payment of tax arrears, fines or penalties; political or religious activities; among others.

Under state requirements, the program can only fund up to 75 percent of a project. These loans can be structured as a standalone obligation wherein the borrower is putting up at least 25 percent equity or to complement a bank loan with at least 10 percent equity injected by the borrower. The loans must be fully backed by collateral. A loan can also be participatory in which a bank buys a portion of the Innovation loan.

Currently, TEDA has partnered with others in the community to support QuickBooks lab training. For its enrolled clients, ILTAP is paying the enrollment fee for the evening seminar. Several dates, Oct. 13 and 27, Nov. 3 and 10, and Dec. 1 and 8, remain. Qualifying for these services is quick, just a few key pieces of information are required to begin accessing them. Please give our office a call at 873-6890 for an appointment to complete your enrollment; for further information on any of these opportunities, call us or visit www.tpeda.org.