01 April 2020 – State-led program to offer loan to small businesses affected by COVID-19 crisis

Type of Intervention: Financial and Economic, Guidance
Sectors Involved: Finance/Economy
Level of Jurisdiction: LA
Lead People/Agency: Governor John Bel Edwards: Decision Maker
Louisiana Economic Development: Implementer

Overview: Governor John Bel Edwards announced a new Louisiana Loan Portfolio Guaranty Program, which will offer loans of up to $100,000 to Louisiana small businesses of fewer than 100 employees that are impacted by the COVID-19 crisis. To help Main Street and rural businesses sustain operations, the loans will require no payments and will bear no interest for 180 days and carry below-market interest rates of no more than 3.5 percent. The Loan Portfolio Guaranty Program, or LPGP, is a partnership of Louisiana Economic Development, which will provide a loan guaranty fund; the Louisiana Bankers Association, whose membership will provide the loans; and the Louisiana Public Facilities Authority, which will administer the program. A total loan pool of $50 million will be quickly disbursed to eligible small businesses across Louisiana.
Full details here: https://gov.louisiana.gov/index.cfm/newsroom/detail/2441

Type of Justification: Advice of INTERNAL government advisory committee or group
Source of Evidence or Justification: State: Louisiana Economic Development
Evidence/Justification: The justification for this policy came via the Louisiana Economic Development program in the aim to stabilize the economy and provide relief for small businesses and employees.