The New Orleans Office of Economic Development announced the creation of the Small Business Assistance Fund (SBAF) in partnership with the City of New Orleans, Louisiana and NewCorp, Inc.
SBAF starts off with $2 in available funding that will be used to provide 8% interest rate loans to for-profit and non-profit businesses for operating capital and equipment purchases.
SBAF loans are expected to range from $10,000 to $100,000 with a maximum term of up to 84 months. 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.
“I am committed to growing our small businesses and creating jobs in our community,” said New Orleans Mayor Mitch Landrieu. “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.”
SBAF is partially funded by the City of New Orleans Economic Development Fund. NewCorp is a Community Development Financial Institution (CDFI) tasked with administering the SBAF program.
“The Small Business Assistance Fund program presents an opportunity for the small business person and the entrepreneurial community, that have not had access to capital and coaching assistance, to access those resources now,” said Vaughn Fauria, president and executive director of NewCorp Inc. “The City of New Orleans and NewCorp are committed to the small business enterprises and fully realize that a healthy business community supports job creation and a thriving city.”
“The Economic Development Advisory Committee has been working for a long time to make the EDF Fund promote equitable economic opportunity,” said Judith Dangerfield, chair of the advisory committee. “The Small Business Assistance Fund does that – for our small businesses and entrepreneurs, our unemployed and underemployed citizens, and our communities.”