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Direct Financial Incentives

Various industrial development boards also issue bonds. These have a maximum term of 40 years. The bonds can be used for industrial plant sites, buildings and equipment, pollution-control facilities, office buildings, warehouses, and more.

Qualified small manufacturing and exempt facilities may also apply to the Governor's office for tax-exempt bond status through an allocation of the state's Volume Cap.

General obligation bonds:
Cities, parishes, and industrial districts issue bonds to businesses in an amount not to exceed 20 percent of the assessed valuation. Proceeds of the bonds may be used to acquire plant sites, construct plant buildings, and purchase equipment up to 100 percent of project costs.

State Financial Assistance:
The Louisiana Economic Development Corp. provides matching investments to stimulate the growth of Louisiana venture capital companies and financially assists Louisiana-based economically disadvantaged and other small businesses through, loans, and loan guarantees.

The State Market Commission makes loans to agricultural businesses for the purpose of purchasing, improving or constructing a new plant. The term of the loan may not exceed five years. Loans are guaranteed up to 25 percent, or up to $100,000. The State Market Commission guarantees agricultural plant loans.

Work force training incentives

Customized industrial training:
A well-coordinated set of worker-training programs exists in Louisiana, including Incumbent Worker Training, Workforce Investment Act, and welfare-to-work programs at the Department of Labor.

Training assistance is provided through Louisiana Economic Development's Workforce Development Training Program, Department of Labor's Incumbent Worker Training Program (IWTP), and Louisiana Community and Technical College System. The state's IWTP fund is an annual $50 million fund for employer-customized training. The Workforce Development Training Program provides customized pre-employment and on-the-job training, using either public or private training providers. The Department of Labor manages the Workforce Investment Act funds to coordinate programs, and helps companies select eligible applicants, provides customized training, and reimburses up to 50 percent of wages paid during the training period.

Economic Development Awards Program:
The Economic Development Awards Program provides a minimum of $25,000 for publicly-owned infrastructure to assist industrial or business development projects that promote economic development and require state assistance. The applicant must be a public or quasi-public state entity or political subdivision of the state and a private company, which will be the primary beneficiary. Projects must create or retain at least 10 permanent jobs in Louisiana.

Small Business Loan Program:
Provides loan guarantees and participations to banks to facilitate capital accessibility for businesses. Guarantees may range up to 75 percent of the loan amount, not to exceed $1.5 million. Loan participants are available up to 40 percent.

Micro Loan Program:
Provides loan guarantees and participations to banks that fund loans ranging from $5,000 to $50,000 to Louisiana small businesses.

Contract Loan Program:
Provides loan participants and guarantees to banks that fund government contract loans ranging from $5,000 to $1 million for terms of one year or less.  Loans are intended to help businesses finance working capital for contracts with government agencies.

Venture Capital Match:
Provides a match investment for qualified minority venture capital funds with at least $5 million in private investment. May provide $1 million in matching funds for every $2 of private investment up to $5 million.

Minority Venture Capital Match:
Provides a match investment for qualified minority venture capital funds with at least $250,000 in private investment.  May provide $1 matching funds for every $2 of private investment up to $2.5 million

Venture Capital Co-Investment:
Provides a co-investment in a Louisiana business up to one-fourth the round of investment, not exceeding $500,000, with any qualified venture capital fund of at least $7.5 million in private capital. The venture capital fund may be from outside Louisiana.

Louisiana Seed Capital:
Provides matching or co-investment funds to be combined with other capital to or through a Louisiana-based, for-profit fund with three years experience managing the investments of other parties and have raised at least $250,000 for a co-investment or $500,000 for a matching fund.  Must be used exclusively for see investment needed to move a Louisiana small business to commercial production.

BIDCO Investment:
Provides matching or co-investment funds for certified Louisiana business and industrial development corporations (BIDCOs).  BIDCOs are state-chartered, non-depository alternative financing sources for small business frequently used to provide equity and subordinated debt financing to new and growing companies, as well as companies requiring turnaround assistance.  Must have at least $1 million in private capital. May provide $1 in matching funds for every $2 of private capital up to $2.5 million.