Below is general information about the application processes for
incentives and programs available through Louisiana Economic
Development. You can find more specific steps for application by
using the Incentive & Program
Finders available on our website.
Incentives Application Process
Advance Notification
Louisiana Economic Development requires companies to file an
Advance Notification, along with the appropriate fee, before any
hiring, purchasing or construction begins on a project. When a
company provides Advance Notification, it is communicating to LED
that it intends to take advantage of an incentive(s). The Advance
Notification must be submitted for the following incentives:
- Enterprise Zone
- Quality Jobs
- Restoration Tax Abatement
- Industrial Tax Exemption
Advance Notification should be filled out online through FastLane.
Online Application
LED incentives available for online application through FastLane include:
To apply for other incentives, printable PDF applications and
instructions are available for applicants. Visit the Incentives Finder for more
information.
Programs Application Process
Louisiana Economic Development requires small entrepreneurships
and small and emerging businesses to register online before
applying for certain small business programs. Applicants should
register online through the Small
Business Certification System. Program applicants must register
for the following programs:
For information on other programs, visit the Program Finder.
1. What is an incentive and how is it different from a
program?
Incentives are typically financially based and can include tax
credits, rebates, abatements and performance-based assistance.
However, some incentives may provide workforce training and
infrastructure improvement assistance to Louisiana businesses.
Programs provide access to resources and are typically intended
for in-state companies and small businesses. They offer loan
guaranties and participations, encourage investment in businesses
through matches and co-investments and promote entrepreneurship and
industry training.
2. Business plans are required for certain programs. What
should be included in these business plans?
Use the outline below as a guide for creating a business plan.
Also, contact your local Small Business Development
Center for assistance in developing your business plan.
Sample Business Plan Outline
- Cover Letter
- Name of the bank contacted
- Name of the banker contacted
- Dollar amount requested
- Terms and timing of loan request
- Type and price of securities (collateral)
- Summary
- Business description
- Name
- Location and plant description
- Product
- Market and competition
- Management goals
- Business goals
- Summary of financial needs and application of funds
- Earnings projections and potential return to investors
- Market Analysis
- Description of total market
- Industry trends
- Target market
- Competition
- Products or Services
- Description of product line
- Proprietary position: patents, copyrights and legal and
technical considerations
- Comparison to competitors' products
- Manufacturing Process (if applicable)
- Materials
- Sources of supply
- Production methods
- Marketing Strategy
- Overall strategy
- Pricing Policy
- Sales terms
- Method of selling, distributing and servicing products
- Management Plan
- Form of business organization
- Board of directors composition
- Officers: organization chart and responsibilities
- Resumes of key personnel
- Staffing plan/number of employees
- Facilities plan/planned capital improvements
- Operating plan/schedule of upcoming work for the next one to
two years
- Financial Data
- Financial history (five years to present) - all financial
statements must meet generally accepted accounting principles
[GAAP])
- Five-year financial projections (first year by quarters,
remaining years annually)
- Profit and loss statements
- Balance sheets
- Cash flow charts
- Capital expenditures estimates
- Explanation of projections
- Key business ratios
- Explanation of use and effect of new funds
- Potential return to investors compared to competitors and
industry in general
3. How can loan guaranty funds be used?
A business can use loan guaranty funds in the following
ways:
- Purchase of fixed assets, including buildings that will be
occupied by the applicant to the extent of at least 51
percent.
- Purchase of equipment, machinery or inventory.
- Line of credit for accounts receivable or inventory.
- Debt restructure may be considered, but will not be considered
when the debt:
- exceeds 25 percent of total loan with the following exception:
a maximum of 35 percent may be considered on a guaranteed loan but
the guarantee percent will be decreased by 5 percent; and/or
- pays off a creditor or creditors who are inadequately secured;
and/or
- provides funds to pay off debt to principals of the business;
and/or
- provides funds to pay off family members.
A business cannot use loan guaranty funds to:
- Buy out stockholders or equity holders of any kind, by any
other stockholder or equity holder.
- Purchase any speculative investment or real estate
development.
4. How does SBA define a small business?
The Small Business Act defines a small business as a concern
that is organized for profit; has a place of business in the U.S.;
operates primarily within the U.S. or makes a significant
contribution to the U.S. economy through payment of taxes or use of
American products, materials or labor; is independently owned and
operated; and is not dominant in its field on a national basis. The
concern must meet the numerical small business size standard for
its industry. The most common size standards are as follows:
- 500 employees for most manufacturing and mining
industries;
- 100 employees for all wholesale trade industries;
- $7 million for most retail and service industries;
- $33.5 million for most general and heavy construction
industries;
- $14 million for all special trade contractors;
- $0.75 million for most agricultural industries.
For a comprehensive list of size standards, visit the Small Business
Administration website.
