This city is full of small businesses, entrepreneurs, and innovators who sometimes need that extra push to make it work. Last week, the Small Business Assistance Fund (SBAF) partnered with the City of New Orleans and NewCorp for a new financing program to help grow new and existing small businesses. The fund is currently at $2 million and provides 8% interest rate loans to businesses. The loans provided will range from $10,000 to $100,000, which will greatly help many of these businesses who just need that extra bit of assistance.
A press conference was held to discuss the program at the end of last month. Mayor Landrieu, addressing his support of local businesses, said “I am committed to growing our small businesses and creating jobs in our community. This initiative is yet another example of how we can build capacity among our local businesses, remove obstacles to capital and ensure their inclusion in local opportunities.”
The small businesses throughout the city of New Orleans are essential to how the city runs, develops, and keeps its flavor. According to Judith Dangerfield, chair of the Economic Development Advisory Committee, she is thankful that the Mayor’s Office of Economic Development and Newcorp have been, “rolling up their sleeves and fostering a meaningful partnership to leverage limited resources and provide investments for citizens and neighborhoods that have nowhere to go but forward.”
To be eligible, participants must meet the following requirements:
- Domiciled in Orleans Parish;
- Demonstrate that it has been unable to access capital from traditional lending sources;
- Demonstrate financial and economic viability to spur growth and employ City of New Orleans residents; and
- Provide living-wage employment and ownership opportunities to low-to-moderate income communities.
The application period began on Monday, October 1st, 2012. Other important dates are listed below:
- Application Deadline: October 31st, 2012
- Program Eligibility Notification: December 1st, 2012
- Loan Eligibility Notification: January 1st, 2013
- Due Diligence/Interview Period: January – February 2013
- Final Loan Commitment Letters: March 2013
- Loan Closing: March – April 2013
For more information visit NewCorp’s website.