Incentives

Local Incentives

Place Base Loan

Eligible program participants of the Place-Based Investment Loan Program may receive a 3-year low interest loan with 40% a forgivable portion for the completion of approved improvement projects. Projects funded will either consist of dilapidated signs of facade improvements for commercial historic structures in designated corridors of the Parish. The program is administered by St. John the Baptist Parish Administration, Planning and Zoning Department, and Economic Development Department in partnership with South Central Planning and Development Commission.

Louisiana Economic Development

Link to LED website:  opportunitylouisiana.com/business-incentives

St. John the Baptist Parish

Place-Based Investment Loan Program Policy

May 2019

SECTION 1: INTRODUCTION

1.1 Mission Statement

The mission of the St. John the Baptist Parish Placed-Based Investment Loan Program is to fill identified gaps in local capital markets within target redevelopment corridors of the Parish, thereby increasing the flow of capital to projects that create a positive visual impact and catalytic economic activity.

1.2 Purpose

The purpose of the St. John the Baptist Parish Placed-Based Investment Loan Program is to encourage local economic development and resiliency by supporting small businesses and property owners; to promote general economic development around key target corridors of the Parish; to promote partnership between local, state and federal stakeholders and the leveraging of multiple funding sources; to stimulate private investment leading to economic revitalization of the Parish; and to encourage private development in accordance with the goals of the Parish's Comprehensive Plan and Land Development Code. Further, the program works to encourage enhancements to the property as viewed from the public right-of-way as a means to generate additional business for the target corridors and entire Parish.

1.3 Program Overview

Eligible program participants of the Placed-Based Investment Loan Program may receive a 3-year low interest loan with 40% a forgivable portion for the completion of approved improvement projects. Projects funded will either consist of the replacement of dilapidated signs or facade improvements for commercial historic structures in designated corridors of the Parish. The program is administered by the St. John the Baptist Parish Administration, Planning and Zoning Department, and Economic Development Department in partnership with South Central Planning and Development Commission.

SECTION 2: ELIGIBILITY REQUIREMENTS

2.1 Borrowers

Loans will be made to sole proprietors, corporations, partnerships, and existing non-profit organizations for projects within the Program Service Area which meet the requirements of Section 2.3: Project Specifications.

2.2 Program Service Area

Following several years of improvements in Parish regulations to encourage higher quality development, the program will provide local property owners and businesses with capital to make necessary upgrades for zoning and historic district compliance and long-term resilience. Further, concentrating investments in key corridors will work to maximize investment potential and lead to further growth and economic activity Parishwide. As such, eligible projects must be located within the following designated target corridors of the Parish 1:

•    Major Corridor Overlay District

•    LaPlace Historic District

•    Reserve Historic District

•    Garyville Historic District

•    River Road Historic District: The Historic Towns of Edgard, Lucy and Wallace

 

2.3 Project Specifications

Loans will be made for the following types of projects2:

  1. Replacement of Commercial Signs
    a.  Example: demolition of an outdated pole sign and replacement with a new monument sign with landscaping.
  2. Refurbishment of Parking Lot for Improved Water Management
    a. Example: Repave and reduce the total square footage of impervious pavement on a commercial site for preservation of green space and the installation of "green strategies" for improved stormwater management.
  3. Facade Improvements for Commercial Historic Structures
    a.  Example: repair of windows, doors, awnings, painting, and provision of landscaping on a commercial historic structure and site.

Ineligible projects include: interior improvements, roof repairs, foundation repair, pole signs, interior lit signs or electronic variable message signs, interior window treatments, routine maintenance, projects that reduce number of parking spaces below required Parish minimums, subsurface drainage work, improvements on residential properties, non-permanent fixtures, architectural or other professional fees, permit fees, and business equipment or supplies.

Only those projects meeting the minimum specifications above will be reviewed by the Parish for consideration. Projects will then be evaluated using the following criteria:

  1. Program Mission - How relevant is the project to the program's mission?
  2. Visual Impact - Will the project offer significant visual improvement to the property? Is the improvement in a high-traffic or highly visible area?
  3. Community Impact-Will the project benefit the overall corridor? Does the project benefit the community as a whole?
  4. Economic Impact - Will the project result in any economic growth (add jobs, encourage occupancy, increase building value)?
  5. Useful Life of Improvements - Are the improvements permanent? Will the improvements be affixed to the property? 

Note: projects must be permitted through the St. John the Baptist Parish Planning and Zoning Department and meet all applicable Federal, State and local codes and regulations.

Loans made under the program are limited by available program funds. If all project proposals cannot be supported by the available program funds, then loans will be awarded to those projects offering the greatest contribution to the community under the program's mission. Further, projects which leverage additional sources of funding (private loans or funding, tax credits, grants, etc.) will be prioritized.

 

SECTION 3: LOAN TERMS and UNDERWRITING REQUIREMENTS

3.1 Loan Amounts
Loans will be made for projects of a minimum of $5,000 up to a maximum of $50,0003 Any project amounts which exceed $50,000 or original award must be paid for by the borrower's own funds (this includes unexpected increases in project cost beyond the initial award).

3.2 Loan Purposes

The purpose of the loan must be clearly identified on the loan application as "use of funds" and must conform to the proposed project.

3.3 Loan Terms & Conditions

  • 0% interest Loans will be made with terms of up to three years within the specific loan amounts as a forgivable loan.
  • Initial Repayments may be deferred up to 6 months.
  • A three-year compliance period begins upon satisfactory inspection of the fully completed improvements funded. The compliance period may be ended if the loan portion is fully paid
  • Compliance inspections will be conducted periodically to ensure that the project remains intact for the entirety of the compliance period. Should the project not be completed as proposed or the project site falls out of compliance with the terms of the loan, 100% repayment is required immediately upon notice to the borrower.
  • During the life of the loan compliance period, borrower must hold property insurance (including flood insurance where required) covering the current value of the property plus project improvements.

3.4 Lending Principles and Underwriting - SCP staff will utilize sound financial, economic, and banking principles as a guide in evaluating loan requests guided by SCPDC's Comprehensive Loan Policy. Summarized to include:

a. Minimum credit score based on Equifax current credit reporting is 600 for all persons with ownership greater than or equal to 20%.

3 Note: funding approval is reliant upon availability of funds. Place Based Investment Loan Policy

b. A minimum company and/or global debt service ratio of 1.1:1. Ratios shall be calculated based on historical financials for existing businesses. Start-ups will be considered on a case by case basis.

3.5 Collateral Requirements - all business assets including (but not limited to) land, buildings, equipment (including vehicles and vessels), accounts receivable, inventory, insurance, personal guarantees, etc., can be required by Board for use in collateralizing a loan. Collateral requirements for SCPDC loans may include a mortgage on business property or on the owner's home.

3.6 Guarantors – owners of at least 20% of applicant businesses are required to execute a personal guarantee of the loan. An exception MAY be made for a non-profit organization as a borrower whereas in lieu of the personal guarantee of directors and/or board members, collateral shall be required.

 

SECTION 4: PROGRAM STEPS

4.1 Pre-Application Meeting

Applicants who propose projects which meet the minimum stated goals of the program will attend a pre-application meeting with program staff to review the project and the application process and requirements. No pre-application fee is required to attend this meeting. Applicants would then be notified whether they are eligible, subject to completion of the loan application and review.

4.2 Application Requirements

  1. Completed Application
  2. 3 Years of Tax Returns for business and/or individuals with 20% or more ownership interest (non-profits must provide a minimum of three years of filed 990s or a minimum of three years of audited financial statements)
  3. Copy of Government Identification
  4. Proof of Ownership or Letter of Authorization for Improvements (deed, lease, etc.)
  5. Detailed Explanation of Proposed Improvements
  6. Renderings, elevations, drawings, etc. for Proposed Improvements
  7. Cost Estimates for All Uses of Funds
  8. Additional Sources of Funding, if applicable

4.3 Selection Process

  1. Application Submittal Process.
    a.  A complete application must be submitted with all other required documents;
    b.  Applications will be denied 30 days after submission if all required documentation is not received by the Parish
    c.   Applicants will have 60 days after the date of denial to resubmit applications.
     
  2. Design Review Committee.
    a.  South Central Planning and Development Commission will review applications to ensure completion and eligibility of project and forward to the Design Review Committee;
    b.   Design Review Committee composed of Parish staff as designated by the Parish President will review the complete application to ensure the proposed project meets the mission, goals and criteria for project selection (note: projects will be selected on a first-come, first-serve basis and will be approved based upon designs that best meet the purpose and objectives of the program);
    c.   Applicants will be notified in writing of the Parish's decision to select or deny a proposed project.

4.4 Loan Award and Agreement

Upon completion of an application and selection by the Design Review Committee for award, the applicant will execute a Loan Agreement with the Parish outlining provisions for the use of funds and procedures for payment. The completion date of the improvements will be determined on a case-by-case basis and will be included in the Loan Agreement. If the project is not completed by this date, the loan amount will be due in full to SCP immediately upon notice. SCP staff may extend this date upon written request from the applicant. Further, the loan agreement will expire upon satisfactory completion of the three-year compliance period as described in Section 3.3 of this document.

LED Louisiana Economic Development

Louisiana Business Incentives

https://www.opportunitylouisiana.com

Your Competitive Advantage Starts Here.

Expanding? Relocating? Starting up?
Louisiana's tax credits and incentive programs can give your company a competitive edge.

(/fastlane)
FASTLANE (/FASTLANE)LED's real time, searchable database for incentives data, FastLane manages the applications for select incentive programs.

(/boards-reports-and-rules/performance-reporting)
INCENTIVES PERFORMANCE REPORTING (/BOARDS-REPORTS-AND­ RULES/PERFORMANCE-REPORTING)
Reports on select LED incentives including program activity, usage trends and performance.

(/faststart)
LED FASTSTART® (/FASTSTART)
The nation's No. 1 workforce training program, FastStart creates customized employee recruiting, screening and training solutions - at no cost to eligible companies.

(/business-incentives/angel-investor-tax-credit)
ANGEL INVESTOR TAX CREDIT (/BUSINESS-INCENTIVES/ANGEL-INVESTOR-TAX-CREDIT)
Up to a 25 percent tax credit for individual investors who invest in early stage, wealth-creating businesses that seek start-up and expansion capital.

(/business-incentives/digital-interactive-media-and-software-program)
DIGITAL INTERACTIVE MEDIA AND SOFTWARE PROGRAM (/BUSINESS­ INCENTIVES/DIGITAL-INTERACTIVE-MEDIA-AND-SOFTWARE-PROGRAM)

A 25 percent tax credit for in-state labor, and an 18 percent credit for eligible production expenditures
(http://www.opportunitylouisiana.com/incentives/digital-interactive-media-and-software-development­incentive)

(/business-incentives/enterprise-zone)

ENTERPRISE ZONE (/BUSINESS-INCENTIVES/ENTERPRISE-ZONE)

Either a $3,500 or $1,000 tax credit for each certified net, new job created and either a state sales/use tax rebate on capital expenses or 1.5 percent investment tax credit for qualifying expenses.(http://www.opportunitylouisiana.com/incentives/enterprise-zone)

(/business-incentives/Entertainment-Job-Creation-Program)
ENTERTAINMENT JOB CREATION PROGRAM (/BUSINESS-INCENTIVES/ENTERTAINMENT­JOB-CREA TION-PROGRAM) A 15 percent or 20 percent tax credit on annual wages to qualified entertainment companies (QEC) that create a minimum of five well-paid net new jobs for Louisiana residents.

(/business-i ncentives/opportunity-zones)
FEDERAL OPPORTUNITY ZONES (/BUSINESS-INCENTIVES/OPPORTUNITY-ZONES) Provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds.

(/business-incentives/industrial-tax-exemption)
INDUSTRIAL TAX EXEMPTION (/BUSINESS-INCENTIVES/INDUSTRIAL-TAX-EXEMPTION)
Property tax abatement for up to 10 years on a manufacturer's new investment and annual capitalized additions.

(/business-incentives/Live-Performance-Production-Program)
LIVE PERFORMANCE PRODUCTION PROGRAM (/BUSINESS-INCENTIVES/LIVE­PERFORMANCE-PRODUCTION-PROGRAM) Up to 25 percent tax credit for musical and theatrical productions, refundable or transferable on a one-time basis.

(/business-incentives/motion-picture-production-program)
MOTION PICTURE PRODUCTION PROGRAM (/BUSINESS-INCENTIVES/MOTION-PICTURE­PRODUCTION-PROGRAM) Up to a 40 percent tax credit on eligible in-state production expenditures, including resident and non­resident labor.

(/business-incentives/music-job-creation-program)
MUSIC JOB CREATION PROGRAM (/BUSINESS-INCENTIVES/MUSIC-JOB-CREATION­PROGRAM)
A 10 percent or 15 percent credit on annual wages to qualified music industry-related companies (QMC) that create a minimum of three well-paid net new jobs for Louisiana residents.

(/business-incentives/quality-jobs)
QUALITY JOBS (/BUSINESS-INCENTIVES/QUALITY-JOBS)
Up to a 6 percent rebate on annual payroll expenses for up to 10 years and either a state sales/use tax rebate on capital expenses or a 1.5 percent project facility expense rebate for qualifying expenses.

(/business-incentives/research-and-development-tax-credit)
RESEARCH AND DEVELOPMENT TAX CREDIT (/BUSINESS-INCENTIVES/RESEARCH-AND­DEVELOPMENT-TAX-CREDIT) A tax credit up to 30 percent to existing businesses with operating facilities in Louisiana to establish or continue research and development within the state.

(/business-incentives/restoration-tax-abatement)
RESTORATION TAX ABATEMENT (/BUSINESS-INCENTIVES/RESTORATION-TAX­-ABATEMENT)
A 100 percent property tax abatement for up to 10 years for the rehabilitation of an existing structure.

(/business-incentives/sound-recording-program)
SOUND RECORDING PROGRAM (/BUSINESS-INCENTIVES/SOUND-RECORDING-PROGRAM)
A production credit of 18 percent for eligible production expenditures.

SPECIAL PROGRAMS FOR SMALL BUSINESSES

(/small-business/special-programs-for-small­-business)
From entrepreneurial startups to small business growth and expansion, Louisiana offers a comprehensive array of educational, managerial and financial programs that cultivate small business opportunities.

(/small-business/special-programs-for-small-business/bonding-assistance-program)
BONDING ASSISTANCE PROGRAM (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR­SMALL-BUSINESS/BONDING-ASSISTANCE-PROGRAM) Provides access to quality bid, payment and performance bonds at reasonable rates from surety companies when bonding capacity is needed on public or private jobs.

(/small-business/special-programs-for-small-business/ceo-roundtable)
CEO ROUNDTABLES (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR-SMALL­BUSINESS/CEO-ROUNDTABLE)
Peer groups that give executives the opportunity to discuss business practices and management strategies with other executives who deal with similar growth challenges.

(/small-business/special-programs-for-small-business/economic-gardening-initiative)
ECONOMIC GARDENING INITIATIVE (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR­SMALL-BUSINESS/ECONOMIC-GARDENING-INITIA TIVE)
Provides customized core business strategies, market research, qualified sales leads and improved internet and technology tailored to your growing needs.

(/small-business/special-programs-for-small-business/hudson-initiative)
HUDSON INITIATIVE (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR-SMALL­BUSINESS/HUDSON-INITIATIVE)
Certification program offers greater access to purchasing and contracting opportunities at the state government level.

(/small-business/special-programs-for-small-business/louisiana-contractors-accreditation­institute)
LOUISIANA CONTRACTORS ACCREDITATION INSTITUTE (/SMALL-BUSINESS/SPECIAL­PROGRAMS-FOR-SMALL-BUSINESS/LOUISIANA-CONTRACTORS-ACCREDITA TION­INSTITUTE)
Offers seminars and courses to small and emerging construction businesses that assist in building a solid foundation of knowledge within the construction industry.

(/veterans-first)
LOUISIANA VETERANS FIRST BUSINESS INITIATIVE (NETERANS-FIRST)
The program will allow for a veteran, active or reserve military, or Gold Star spouse who have a fifty-one percent ownership in a business to apply for and gain certification to recognize and promote their businesses. In addition, the program will create a searchable database for anyone seeking to patronize a veteran, active-duty or reserve military, or Gold Star spouse business.

(/small-business/special-programs-for-small-business/mentor-protege-recognition-program)
MENTOR-PROTEGE RECOGNITION PROGRAM (/SMALL-BUSINESS/SPECIAL­PROGRAMS-FOR-SMALL-BUSINESS/MENTOR-PROTEGE-RECOGNITION-PROGRAM)
Connects Louisiana-based small and emerging businesses to technical and developmental assistance provided by mentor companies.

(/small-business/special-programs-for-small-business/small-and-emerging-business­development-program)
SMALL AND EMERGING BUSINESS DEVELOPMENT PROGRAM (/SMALL­ BUSINESS/SPECIAL-PROGRAMS-FOR-SMALL-BUSINESS/SMALL-AND-EMERGING­BUSINESS-DEVELOPMENT-PROGRAM)
Provides for developmental assistance, including entrepreneurial training, marketing, computer skills, accounting, legal and industry-specific assistance.

(/business-incentives/small-business-loan-and-guaranty-program)
SMALL BUSINESS LOAN AND GUARANTY PROGRAM (/BUSINESS-INCENTIVES/SMALL­BUSINESS-LOAN-AND-GUARANTY-PROGRAM)
Provides loan guarantees to banks and other small business lenders in association with the SSBCI ranging from $5,000 to $1.5 million.

(/small-business/special-programs-for-small-business/step-grant)
STEP GRANT (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR-SMALL-BUSINESS/STEP­GRANT)
Provides financial awards to state and territory governments to assist small businesses with export development.

(/small-business/special-programs-for-small-business/veteran-initiative)
VETERAN INITIATIVE (/SMALL-BUSINESS/SPECIAL-PROGRAMS-FOR-SMALL­BUSINESSNETERAN-INITIATIVE)
Helps veteran-owned and service-connected disabled veteran-owned small businesses gain greater access to purchasing and contracting opportunities at the state level.

These programs are administered by Louisiana Economic Development through the Louisiana Economic Development Corporation. For additional information on these programs, please contact LEDC at 225-342-5675.

Economic Gardening Initiative
(http://louisianaeconomicdevelopment.com/page/economic-gardening-initiative)
Provides customized core business strategies, market research, qualified sales leads and improved internet and technology tailored to your growing needs.

Hudson Initiative (http://louisianaeconomicdevelopment.com/page/hudson-initiative)
Certification program offers greater access to purchasing and contracting opportunities at the state government level.

Small & Emerging Business Development Program
(http://louisianaeconomicdevelopment.com/page/small-and-emerging-business­development-program)
Provides for developmental assistance, including entrepreneurial training, marketing, computer skills, accounting, legal and industry-specific assistance.

Small Business & Loan Guaranty Program
(http://louisianaeconomicdevelopment.com/page/small-business-loan-and-guaranty­program)
Provides loan guarantees to banks and other small business lenders in association with the SSBCI ranging from $5,000 to $1.5 million.

Veteran Initiative (http://louisianaeconomicdevelopment.com/page/veteran-initiative)
Helps veteran-owned and service-connected disabled veteran-owned small businesses gain greater access to purchasing and contracting opportunities at the state level.

Enterprise Zone (http://louisianaeconomicdevelopment.com/page/enterprise-zone)
A $2,500 tax credit for each certified net, new job created and either a 4 percent sales/use tax rebate on capital expenses or 1.5 percent refund on capital investment.

Quality Jobs (http://www.louisianaeconomicdevelopment.com/page/quality-jobs)
Up to 6 percent rebate on annual payroll expenses for up to 10 years and either a 4 percent sales/use tax rebate on capital expenses or a 1.5 percent investment tax credit for qualifying expenses.

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