May 24, 2022
How to Get a Business Loan in Louisiana
Of course, if you don’t have the working capital to start or expand your existing business, even the best idea can’t succeed. This post will explain why you should consider a business loan in Louisiana, and what types of loans are available.
Why Get a Business Loan in Louisiana?
According to Statista, in 2020, the most prominent industries by GDP in Louisiana were:- Manufacturing
- Finance, insurance, real estate, rental, and leasing
- Educational, social assistance, and health care services
- Professional and business services
- Retail
- Oil and gas
Types of Louisiana Small Business Loans
Regardless of the industry in Louisiana that interests you, you’ll need business financing. Fortunately, Louisiana offers a wide range of business loans.1. Traditional Small Business Loans in Louisiana
As with any other state in the US, Louisiana is home to many traditional banks and credit unions. These lenders offer a variety of traditional term loans and lines of credit for established entrepreneurs. While the loan terms are generally favorable, qualifying for a traditional loan in Louisiana is difficult for new entrepreneurs. Unless you have significant financial resources and a track record of good performance, you’ll struggle to obtain a traditional loan. However, traditional business loans are a good option if you have a solid financial standing. A few of the banks with the largest presence in Louisiana include:- Hancock Whitney Bank
- Chase Bank
- Capital One
- Regions Bank
- First Horizon Bank
- Sabine State Bank
2. Small Business Administration (SBA) Loans in Louisiana
The Small Business Administration has a strong presence in Louisiana. Their New Orleans District office serves 64 counties in Louisiana and provides financial assistance and free business counseling. The SBA loan programs available in Louisiana include:- SBA 7(a) Loans: This is the SBA’s most popular loan program. 7(a) loans are general business loans with a wide range of allowable uses, long loan terms, and relatively large amounts.
- Microloans: The SBA guarantees short-term loans of lesser amounts for small businesses through this program.
- CDC/504 Loans: This program can be used to pay for financing assets like real estate or equipment.