Business Financing
JEDCO's financing programs are designed to assist Jefferson Parish-based businesses with financing of fixed assets, working capital and inventory. This is accomplished by utilizing the lending resources of the U.S. Small Business Administration, the Economic Development Administration, the Department of Housing and Urban Development and the Environmental Protection Agency. Most loan programs work in conjunction with bank financing. Under this structure, financing of an eligible project is divided between JEDCO, a private lender and borrower's equity. These federal loan programs have been established to assist with economic development and have the primary objective of job creation. Loans are made in the range of $10,000 to $4 million.
Gulf Opportunity 'GO' Zone Bonds
JEDCO is also authorized to issue Gulf Opportunity (GO) Zone bonds
which allow private business owners and corporations to borrow capital
at very favorable tax-exempt rates to acquire, construct, reconstruct
or renovate non-residential real properties in the GO Zone
Private business owners and corporations may borrow tax-exempt money to
cover the costs of acquiring, constructing, and renovating,
nonresidental real property located in the GO Zone- Jefferson Parish is
included in this zone.
SBA 504 Loan Program
This loan program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from JEDCO (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the business. The maximum "504" loan amount is $1.3 million.
Industrial Development Bonds (IDBs)
JEDCO, through its State enabling legislation, issues tax-exempt and taxable IDBs to finance land acquisition, building construction and the purchase of new equipment.
HUD Community Development Block Grant - Revolving Loan Fund
This loan program is designed to promote economic development by providing financing to businesses that will create jobs for low-to-moderate income persons as determined by HUD guidelines. Loans range from $10,000 - $150,000 and can be used for land/building acquisition, new construction/renovation, equipment purchases, project's professional fees, working capital, and inventory.
» Read more: HUD Community Development Block Grant - Revolving Loan Fund
EDA Revolving Loan Fund
The program is designed to assist small business expansion projects by leveraging private funds with low-cost, fully amortized term loan facilities. Loan amounts range from $25,000 to $150,000. Eligible uses include working capital, land/building acquisition, and equipment purchases.
EPA Brownfields Cleanup Revolving Loan Fund
Objective: To promote economic redevelopment by assisting in the clean-up of designated EPA brownfields sites within Jefferson Parish.
