Program Authorization: R.S. 51:2301 et seq.;R.S. 36:109(N); Act 279 of 1995; Act 17 of 1996
The mission of the Financial Assistance Program is to serve as a catalyst for capital to all Louisiana emerging and existing businesses, enabling new business to form and to provide for sustained economic growth of our state, thus providing an improved quality of life for it's citizens.
The goals of the Financial Assistance Program are:
1. Provide a reliable system of communications, efficient information systems, and well trained human resources to administer LEDC's programs.
2. Provide access to capital for Louisiana emerging and existing businesses, enabling new enterprises.
3. Utilize portfolio management to direct the resources of LEDC to help promote a growing and diverse economy in the state.
OBJECTIVES AND PERFORMANCE INDICATORS
1. The Financial Assistance Program will develop a marketing plan that will increase participation of banks and other financial institutions with LEDC programs by 7% in FY 1998-99.
2. The Financial Assistance Program will achieve a balanced level of risk in LEDC's portfolio with a maximum of 15% tolerance for loss in FY 1998-99.
1 The LEDC Board has determined that it will make more venture capital investments which by their nature are higher-risk than conventional.
1 1992 legislation combined the Louisiana Small Business Equity Program and the Minority and Women Business Development Program into one program, the Small Business Loan Program.
3. The Financial Assistance Program will improve the quality, accuracy, and timeliness of financial reporting with an error rate of less than 10% in FY 1998-99.
4. The Financial Assistance Program will improve accuracy so that there is less than 10% errors, and timeliness of project analysis and reviews are done within 5 working days of receipt in FY 1998-99.
5. The Financial Assistance Program will perform needs assessment of at least three existing financial assistance programs and develop one new program annually that will meet the changing capital needs of the state's business base in FY 1998-99.
SOURCE OF FUNDING
The Financial Assistance program is composed of the activitiy Capital Accessibility. The Capital Accessibility Activity is funded from Statutory Dedications of the Louisiana Economic Development Fund which was established by Act 34 of 1991. (Per R.S.39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund.) Act 1186 of 1995 authorized 37% of the vendor compensation deduction to be dedicated to the Louisiana Economic Development Fund through June 30, 1996. Effective July 1, 1996, Act 32 of the First Special Session of 1996 redirected the deposit of vendor compensation collections into the Workforce Development and Training Fund. This fund was established by Act 483 of 1995 and is utilized for the Workforce Development and Training Activity now located in the Office of the Secretary.
ANALYSIS OF RECOMMENDATION
The total means of financing for this program is recommended at 51.8% of the existing operating budget. It represents 92.0% of the total request ($ 12,954,627) for this program. Reductions in this program are due to the transfer of funding to the Office of the Secretary for the Naval Reserve Force Systems Executive Office for Manpower and Personnel. Additionally, funding was eliminated for the one time expense for the Town of Coushatta's economic development efforts. Reductions were also made to the anticipated level of funding for Financial Assistance required for fiscal year 1998-'99. At the recommended level of funding, this program will provide the level of financial assistance to Louisiana businesses as it anticipates.
Financial Assistance Programs - La. Small Business Loan Program, Venture Capital Incentive Program, Business and Industrial Development Corporation (BIDCO), Micro-loan Program, Contract Loan Program, Small Business Bonding Guarantees, Miscellaneous Loan related charges
ACQUISITIONS AND MAJOR REPAIRS
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