Louisiana Revised Statutes 51:2324 – Loan guarantees; direct loans; grants
Terms Used In Louisiana Revised Statutes 51:2324
- Applicant: means a private nonprofit or public entity located in this state. See Louisiana Revised Statutes 51:2322
- Bonds: means any bond, refunding bond, note, debenture, interim certificate or any bond, grant, or any other evidences of indebtedness of the corporation whether in temporary or in definitive form and whether or not exempt from federal taxation. See Louisiana Revised Statutes 51:2303
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Louisiana Economic Development Corporation. See Louisiana Revised Statutes 51:2322
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Program: means the Louisiana Small Business Incubator Program. See Louisiana Revised Statutes 51:2322
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Small business incubator: means a multi-tenanted facility which is characterized by shared business services, equipment, space, and access to on-premises business consultants for tenants and which is operated by a private nonprofit or public entity. See Louisiana Revised Statutes 51:2322
A.(1) The corporation is authorized and empowered to loan or to guarantee to any eligible applicant, as determined by rules and regulations of the corporation, a sum not to exceed one hundred thousand dollars for the purpose of establishing, maintaining, or expanding a small business incubator.
(2) Any loans or guarantees made under the program shall be secured by the applicant’s granting the state of Louisiana a security interest in that portion of the fixed asset for which the loan is granted or guaranteed. Nothing in this Paragraph shall prohibit the security interest of the state from being primed by or subordinated to another security interest based on public or private capital invested in the real property of the applicant prior to the granting of the loan or guarantee.
(3) The interest charged on any direct loan made under the program shall not be less than the interest rate paid by the state for bonds issued by the corporation and shall not exceed that rate by more than two points.
B.(1) The corporation is authorized and empowered to grant to any eligible applicant, as determined by rules and regulations of the corporation, a sum not to exceed fifty percent of the eligible project cost, but in any case not to exceed one hundred thousand dollars, for the purpose of establishing, maintaining, or expanding a small business incubator.
(2) A grant under the program shall be available only to an applicant who is able to satisfactorily document to the corporation that he has funding available from other sources for the eligible project in an amount which matches, on a fifty-fifty basis, the amount of the grant for which he has applied.
Acts 1995, No. 180, §1; Acts 1995, No. 276, §1, eff. July 1, 1995.