NEW ORLEANS, LA–The City’s Office of Economic Development has launched the second round of the Small Business Assistance Fund (SBAF) loan program, a financing opportunity created by Landrieu Administration in partnership NewCorp, Inc. to support the growth of new and existing small businesses.
The application period will extend through June 14, 2013. SBAF applications are currently available online at www.newcorpinc.com.
“Small businesses are the backbone of our economy, so we welcome any opportunity to support growing businesses that create good-paying jobs and access to economic prosperity,” Mayor Landrieu said. "This program is about creating access to capital for these small businesses."
The SBAF is partially funded by the City of New Orleans Economic Development Fund, a partnership between the City and the NewCorp, Inc., which is the local Community Development Financial Institution selected to administer the program.
The program provides eligible small businesses with 8% interest rate loans ranging from $10,000 to $100,000 for operating capital and equipment purchases. 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 New Orleans residents; and
Provide living-wage employment and ownership opportunities to low-to-moderate income communities.
In the first round of the SBAF loan program, nine local businesses were approved for loans totaling $614,700. The loans will be used for operating capital, equipment purchases and expansion plans, and are expected to generate 23 new jobs.
Loan recipient Derrick Tabb, a member of the Grammy Award winning Rebirth Jazz Band and director of Roots of Music, will use funding from the program to purchase equipment to furnish equipment for the Treme Recording Studio, a startup music studio that will cater to all genres, including hip-hop, jazz and R&B.
Click here for a complete list of recipients of the first round of SBAF loans.
“We are very excited that the first round of the program was successful in lending funds to the targeted recipients. I believe that this partnership with the City of New Orleans and NewCorp will continue to enhance these small businesses through financing and on-going technical assistance," said Vaughn Fauria, President and Executive Director of NewCorp, Inc. “This innovative program will continue to provide the small business person and the entrepreneurial community opportunities to access resources and finances that have been previously unavailable to many.”
Aimee Quirk, advisor to the Mayor for Economic Development, said, “We are very excited to again offer this resource to our local businesses. 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.”
The City and NewCorp will hold a program information session to provide details on the program and walk business owners through the application process. Prospective SBAF loan applicants should plan to attend one of the sessions listed below or sessions that will be scheduled by NewCorp.
Prospective SBAF loan applicants should plan to attend information sessions scheduled by NewCorp for information about the program and application process.
Information sessions will take place at 2pm on the following dates: May 23rd, May 28th, May 30th, June 4th, June 6th, June 10th and June 13th at NewCorp, Inc. at 2924 St. Bernard Avenue in New Orleans.
Those interested in attending a session should RSVP at email@example.com or call 504-208-1700
Prospective applicants can also schedule one-on-one appointments Monday-Friday between 9am and 3pm during the application period, which extends through June 14, 2013. 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.