About this programme
The Small Business Loan Guaranty Program (SBLGP) helps Louisiana small businesses get bank financing by having Louisiana Economic Development Corporation (LEDC) guarantee part of the loan. Rather than lending directly, LED reduces the bank's risk on a loan it already wants to consider, which makes the bank more willing to approve it.
The program is run by Louisiana Economic Development (LED) and LEDC, with SSBCI federal funding behind it.
How it works
LEDC can guarantee up to 80% of a loan or $1.5 million, whichever is lower. The guaranty fee runs from 0% to 2% of the guaranteed amount, set according to risk.
The borrower must put in a minimum of 15% equity.
Loans with a guaranty amount under $500,000 get quicker processing turnaround.
Loans of $100,000 or less must create or retain at least one permanent job; loans over $100,000 must create at least two permanent jobs.
Who can apply
The business must be authorized to do business in Louisiana and maintain an office in the state.
The business must have 500 employees or fewer.
Funds can go toward start-up costs, working capital, business procurement, franchise fees, equipment, inventory, and real estate improvements, but not passive investments.
Restaurants and food vendors operating less than 2 years, bars, gaming, pyramid schemes, financial services, speculative real estate, refinancing, and marijuana-related businesses are not eligible.
How to apply
- Contact an LED Preferred Lender, or any insured bank or credit union, since the guaranty is applied to a loan the lender is already underwriting.
- Download the SBLGP application form.
- Submit the application through your chosen lender.
- The lender contacts LEDC to qualify the loan for the guaranty.
Frequently asked
How much of my loan can LEDC guarantee?
Up to 80% of the loan or $1.5 million, whichever is lower.
What does the guaranty cost?
A guaranty fee of 0% to 2% of the guaranteed amount, set based on risk.
Do I apply to LED directly?
No. You apply through an LED Preferred Lender or any insured bank or credit union, which then contacts LEDC to qualify the loan.
Are there job creation requirements?
Yes. Loans of $100,000 or less must create or retain at least one permanent job; loans over $100,000 must create at least two.
More funding in Louisiana
Collateral Support Program (CSP)
Louisiana Economic Development (LED) / LEDC · Louisiana
LED posts up to $250,000 in cash collateral to help Louisiana small businesses with 100 or fewer employees qualify for a bank loan.
FUEL Proof-of-Concept Fund
Future Use of Energy in Louisiana (FUEL), an NSF Regional Innovation Engine led by LSU · Louisiana
FUEL grants Louisiana clean-energy startups and researchers $100,000 to $125,000 to move a proof of concept toward market.
Louisiana Growth Fund (Venture Capital Program)
Louisiana Economic Development (LED) / LEDC · Louisiana
State direct-capital investment program for high-growth, scalable Louisiana startups ready for venture-style funding.
Louisiana Innovation Retention Grant (IRG) Program
Louisiana Economic Development (LED), established by the Louisiana Legislature · Louisiana
Louisiana matches federal SBIR/STTR Phase II awards with up to $100,000 to keep research-based startups and their jobs in the state.
Louisiana Seed Capital Program
Louisiana Economic Development Corporation (LEDC) via Louisiana Economic Development (LED) · Louisiana
State-backed co-investment capital for Louisiana early-stage startups, delivered through eight approved seed and venture funds.
Micro Lending Program
Louisiana Economic Development (LED) / LEDC · Louisiana
A state revolving loan fund offers Louisiana's very small businesses loans between $1,000 and $100,000 through partner lenders.
All 10 programmes in Louisiana →
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.