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Louisiana Small Business Loans

Louisiana is noted for its understanding of small business. What’s more, the states’ administration has helped the growth of this sector over the past few decades. As such, it’s one of the best states for entrepreneurs to get a business loan. In this article, you’ll find everything you need to know about Louisiana small business grants and loans.

Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021

At a glance A small business in Louisiana is described as one that employs 500 people or less. The average debt amount for small businesses is $90,000, and the state currently has over 447,440 registered small businesses. This accounts for more than 52.8% of the state's privatized jobs in layman’s terms, hiring close to one million workers in total. On this page, we examine the top funding options available in the state of Louisiana, as well as loan eligibility requirements and more.

Top Louisiana Small Business Loan Options

Below, you will find the top local financial instiutitons that offer a variety of small business loans in Louisiana.

1. Louisiana Federal Credit Union

Louisiana Federal Credit Union (Louisiana FCU) is a local financial institution serving the Louisiana communities of Gramercy, LaPlace, Norco, and Hammond. Louisiana FCU offers business financial products and services, including:

  • Business installment loans. This type of loan can be used to purchase everything you need to help your business succeed, such as business equipment or machinery, a commercial vehicle, business inventory, and more. The loan comes with a minimum loan amount of $10,000 and terms up to 10 years.
  • Commercial vehicle loans. A commercial vehicle loan from Louisiana FCU can be used to refinance or purchase a vehicle for your business, - but keep in mind that the vehicle needs to be 10 years old or newer. The minimum loan amount starts at $10,000, with terms up to six years.
  • Business construction loans. A business construction loan can be used to finance the construction or renovation of a commercial property necessary to expand your business. These loans start at $10,000 and come with terms up to 15 years and amortizations up to 25 years.
  • Business lines of credit. Louisiana FCU also offers business lines of credit with a minimum loan balance starting at $10,000 and a maximum term of 12 months with renewal options.

2. Red River Bank

Red River Bank is a Louisiana community bank that has been in business since 1998. The bank offers both personal and business financial services and has locations in Alexandria, Baton Rouge, Lake Charles, Shreveport, Covington, and Lafayette.

Red River Bank is known for offering tailored solutions to state-based businesses of any size. As such, you are welcome to apply for the following types of Louisiana small business loans:

  • Secured and unsecured loans. Whether you require a business loan to purchase new equipment, business inventory, or machinery, Red River Bank offers a variety of secured and unsecured loans to meet your business needs.
  • SBA loans. Red River Bank participates in the government-guaranteed SBA loan program, and its dedicated team is ready to help you find the best solution for your needs.
  • Other types of loans. Red River Bank also offers business lines of credit, letters of credit, real estate and construction loans, and more.

3. Gulf Coast Bank & Trust Company

Gulf Coast Bank & Trust Company offers various financial services for small businesses in the communities in New Orleans, Baton Rouge, and the neighbouring Southeast Louisiana areas. In addition to standard banking services, the bank also provides several business lending options:

  • SBA loans. Gulf Coast Bank & Trust Company actively participates in the federal Small Business Administration loan program through its Gulf Coast Small Business Lending Division, which offers competitive interest rates and great terms to borrowers from a wide range of industries.
  • Term loans. If you need some extra cash to finance business vehicles, equipment, or inventory, Gulf Coast Bank & Trust Company can offer a variety of secured and unsecured small business loans, with variable terms and either fixed or variable interest rates.
  • Other types of loans. The bank also offers commercial real estate loans, business lines of credit, working capital loans, and more.

Summary of the Best Louisiana Small Business Loans

Institution

Type of Financing

Loan Amount

Interest Rate

Loan Term

Louisiana Federal Credit Union

  • Business installment loans
  • Comercial vehicle loans
  • Business construction loans
  • Business lines of credit

$10,000 and more for all types of loans

Not specified

  • Up to 10 years
  • Up to 6 years
  • Up to 15 years
  • Up to 12 months

Red River Bank

  • Term loans
  • SBA loans
  • Business lines of credit
  • Letters of credit
  • Real estate loans
  • Construction loans

Not specified

Not specified

Not specified

Gulf Coast Bank & Trust Company

  • SBA loans
  • Term loans
  • Commercial real estate loans
  • Business lines of credit
  • Working capital loans

Not specified

Not specified - fixed and variable rates available

Not specified

Top Online Louisiana Small Business Loan Options

Apart from the local loan providers listed above, Louisiana-based businesses can also apply for finance from national lenders. Most of these companies also allow you to apply online, such as the ones listed below. 

1. Fundbox

Fundbox is an ideal choice for entrepreneurs with poor credit scores who find it difficult to get approved loans from other institutions. 

Fundbox also has a quick and simple application form. All you need to do is register your company and then link your accounting program to the site. Fundbox takes care of the rest. Furthermore, if authorized, funds can be released immediately, often as soon as the next day. This is a fantastic benefit for small companies that are struggling financially.

Many lenders need at least a 650 credit score for a small business to apply, while Fundbox only requires a score of 500

2. Credibly

Credibly is a reliable online lender that has been issuing small business loans nationwide since 2010. The company’s goal is to make financing available to a wide range of small- and medium-sized businesses. As such, Credibly has rather relaxed eligibility requirements: you only need to have a minimum credit score of 500 in order to qualify for a small business loan from them. The application process itself is simple and quick, and a dedicated support team is available to help you out should you have any issues.

While Credibly offers seven different types of small business loans in Louisiana, the most popular one is a working capital loan. With this type of loan, you would pay a certain percentage of the total amount as a lump sum, rather than paying standard interest rate fees. 

Other financing options include SBA loans, long-term business expansion loans, business lines of credit, merchant cash advances, and more. The loan value can range between $400,000 for shorter-term loans and $5 million for longer-term ones.

3. Fundera

Fundera is a perfect choice if you need a loan but don't have a lot of time to review and compare all of your options. It also assists small businesses that don’t have a track record or previous year accounts to back up their application.

Keep in mind that Fundera merely introduces you to the types of finance you qualify for from other providers. If you apply for a loan through this company, it’ll come from a third-party lender, and you’ll still be subject to lender-specific terms and conditions. 

Fundera will secure the best possible offers for you because the company works closely with its clients and has a proven relationship with established lenders around the country.

Additional Louisiana Small Business Financial Resources

Aside from the commercial loan programs and online lenders listed above, Louisiana also has additional financial services available, such as government offers and small business grants.

Louisiana Government Grants

If you are running a small business in the state of Louisiana, you may be eligible to apply for one or more business grants, either from the federal or state government.

  • Federal grants. The bulk of the federal budget of government grants is poured into the private sector every year, with more than $15 million in grants and an additional $11 million in local government funding sources. With over 80,000 businesses in operation, the government provides grants to a vast range of industries, from scientific and technical services to farming businesses, to accommodation and food companies. 

  • State grants. Eligible entrepreneurs can receive small business grants from the state of Louisiana to help them start and develop their businesses. To be eligible for a state award, an applicant must be disabled, have an outstanding business plan, be from a previously disadvantaged background, or own an enterprise that would significantly support the state of Louisiana. 

Louisiana Grant Watch

Louisiana Grant Watch is a site specifically designed to accumulate and compare grants available to businesses in the state of Louisiana. Here, you can find hundreds of grants to help you start or grow a small business, including grants for minorities, women, and veterans. You will also be able to filter the grants based on the type of funding source, type of your business, and any specific keywords.

Small Business Grants for Women in Louisiana

In 1998, WomensNet started the Amber Grant Foundation. WomensNet continues this tradition today, awarding a minimum amount of $10,000 to Amber Grant beneficiaries per month. There’s also a grant of up to $25,000 offered at the end of each year.

WomensNet is an entrepreneurial group of women who, in addition to awarding grants, produces exclusive content and special reports to assist women business owners. On occasion, they consult or provide tailored business guidance to members of their group.

Other Resources for Louisiana Small Businesses

Besides financial assistance, some states, including Louisiana, also provide resources such as coaching, mentorship, and business networking.

Louisiana Department of Environmental Quality

Small businesses and communities can benefit from the LDEQ's Small Business Assistance Program (SBAP), which offers environmental regulatory assistance and information.

Small businesses are characterized as having 100 or fewer workers and a small facility. They must also be independently owned and not dominating in their industry or publically traded. The Small Business Assistance Program also receives assistance from NetDMR. It’s an online tool that enables facilities to sign and send discharge monitoring reports to the LDEQ electronically.

Louisiana Small Business Development Center

Louisiana Small Business Development Center (Louisiana SBDC) operates with the goal of improving the economic well-being of Louisiana citizens and providing high quality assistance to local small business owners and entrepreneurs.

The organization offers free confidential consulting services to both existing and potential business owners to help them develop an effective strategy and build a profitable business. Louisiana SBDC also runs regular free training sessions on various business-related topics, such as starting a business, obtaining business funding, digital marketing, tax and accounting, and more.

How to Prepare for a Louisiana State Business Loan

In this section, we’ve included some key pointers on how to get a small business loan in Louisiana.

  • Develop a business plan
  • Find a lender willing to work with start-up businesses
  • Improve your credit rating by checking it on a daily basis
  • Get the correct paperwork in order to qualify for different grants
  • Prepare an invoicing finance plan
  • Prepare an operational financing plan
  • Compile a market analysis
  • Explore all of the available funding options, including online and offline alternatives

Bottom Line

Initial startup costs and credit loans are often the most daunting aspects of beginning a company. For a company to start successfully, small business start-ups and owners must explore all possible financing opportunities.

If you’re not eligible for a state grant, there are numerous alternatives to consider. These include business credit cards, invoice lending, and financial or personal loans. Each solution has its own range of risks but also a slew of benefits.

If you’ve exhausted all lending or grant opportunities, there are still various small business loans in Louisiana that can fulfill your finance requirements with terms that suit your budget. Moreover, many national lenders offer speedy loans that you can apply for online. Consider your options and get the perfect small business loan.