New Orleans, LA – Today, in keeping with Mayor Landrieu's commitment to support local businesses, the City's Office of Economic Development announced a new program to encourage small business expansion and job creation. The New Orleans Small Business Assistance Fund (SBAF), created in partnership with the City and NewCorp, Inc., is a new financing program designed to support the growth of new and existing businesses.
“I am committed to growing our small businesses and creating jobs in our community,” said Mayor 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.”
The SBAF is a $2 million fund that will 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. The maximum term of the loan is up to 84 months and will depend on the financing needs of the borrower. 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.
SBAF is partially funded by the City of New Orleans Economic Development Fund and is a partnership between the City and the NewCorp, Inc. – the local Community Development Financial Institution (CDFI) selected to administer the program.
“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. Thanks to the Mayor's Office of Economic Development and to Newcorp for rolling up their sleeves and fostering a meaningful partnership to leverage limited resources and provide investments for citizens and neighborhoods that have nowhere to go but forward.”
Vaughn Fauria, president and executive director of NewCorp Inc., said, “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. 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 City and NewCorp will hold a program information session in each Council district to provide details on the program and walk business owners through the application process.
The following is the list of community meetings in order of date:
Council District A
Thursday, September 20, 2012
Regional Planning Commission Office
10 Veterans Memorial Boulevard
Council District B
Tuesday, September 25, 2012
Rosa Keller Library
4300 S. Broad Street
Council District C
Thursday, September 27, 2012
NOPD 4th District Office
2045 Sanctuary Drive
Council District D
Tuesday, October 2, 2012
Dillard University Professional School Building
2601 Gentilly Boulevard
Council District E
Thursday, October 4, 2012
NOPD 7th District Office
10555 Lake Forest Boulevard
All information sessions will be held from 5:30 pm – 6:30 pm. The application period begins on October 1, 2012, and application deadline is October 31, 2012.
“We are very excited to provide this resource to our local businesses,” said Aimee Quirk, advisor to the Mayor for Economic Development. “Our local businesses are tremendous and essential partners in the rebuilding of our city and any tools we can provide them to ensure their success means a win for the entire city.”
SBAF applications are available online at www.newcorpinc.com. For additional program information and questions about program eligibility, please contact NewCorp, Inc. at 504-208-1700 or firstname.lastname@example.org.