About this programme
The Collateral Support Program (CSP) is a Louisiana Economic Development (LED) / LEDC program that helps small businesses get approved for a bank loan when they fall short on collateral. LED pledges a cash account with the lender to cover the collateral gap, rather than lending money directly to the business.
CSP works through a Louisiana insured depository bank, credit union, or CDFI: the business still applies for a normal loan, and the lender brings in CSP support when collateral is the sticking point.
How it works
LED can pledge up to $250,000 in cash collateral on loans up to $1 million, and the borrower must still bring a minimum of 10% equity to the deal.
Funds from the underlying loan can be used for start-up costs, working capital, equipment, inventory, or business property improvements, but not for passive real estate investment.
Refinancing and owner-to-owner buyouts are not eligible uses.
Who can apply
The business must be authorized to do business in Louisiana and have an office in the state.
It must have 100 or fewer employees, and the borrower must bring at least 10% equity to the loan.
Excluded businesses: restaurants and other food service operations open less than 2 years, alcohol-focused establishments, gaming or gambling enterprises, financial services businesses, speculative real estate ventures, and marijuana-related businesses (direct or indirect).
How to apply
- Contact a Louisiana insured depository bank, credit union, or CDFI about your loan.
- Complete the lender's loan application along with the required supporting documents.
- The lender submits a CSP application to LEDC on your behalf.
- LEDC staff review the application and make a recommendation to the appropriate approval body.
- LEDC notifies the lender of the decision.
Frequently asked
How much collateral support is available?
Up to $250,000 in cash collateral on loans up to $1 million.
Do I apply to CSP directly?
No. You apply for a loan through a participating Louisiana bank, credit union, or CDFI, and the lender submits the CSP application to LEDC.
What can the loan proceeds be used for?
Start-up costs, working capital, equipment, inventory, or business property improvements. Passive real estate investment is not an eligible use.
Is my business excluded?
Restaurants open less than 2 years, alcohol-focused businesses, gaming and gambling enterprises, financial services businesses, speculative real estate ventures, and marijuana-related businesses are all excluded, as are refinancing and owner-to-owner buyouts.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.