Small Business Economic Development Grant Program

Pre-Application

Use of Funds Acknowledgement

    The objective of the Caddo Parish Industrial Development Board's ("Caddo IDB" or "IDB") small business Economic Development Grant Program ("EDGP") is to support job growth by utalizing IDB funds to leverage private sector investment in Caddo Parish.  The Caddo IDB's Economic Development Grant Program awards performance based grants to provide gap funding for small business growth in Caddo Parish. The difference between the amount of financing a developer/business owner has secured and the total cost of the project is the project "gap." Gap funds are intended to provided the last remaining portion of funds necessary to make the proposed project feasible. In the case of the EDGP, the project gap funded by EDGP grants cannot exceed 25% of the overall project cost. Applicant must demonstrate that but for the EDGP Grant, the project would not or could not proceed.

Legal Requirements for Funding

Constitutional Test: In accordance with the Constitution and statutes of the State of Louisiana, the Caddo IDB is prohibited from providing public funds to a private person or entity unless it can show:

(i) a public purpose for the expenditure or transfer that comports with the governmental purpose for which the public entity has legal authority to pursue;

(ii) that the expenditure or transfer, taken as a whole, does not appear to be gratuitous; and

(iii) that the public entity has a demonstrable, objective, and reasonable expectation of receiving at least equivalent value in exchange for the expenditure or transfer of public funds.*

The information requested in the application below is used to determine if an applicant is legally eligible for an EDGP award.

 Minimum Requirements for Consideration: For projects to be considered, the project must:

1.   Create at least five (5) direct full time permanent jobs paying at least $15 per hour; 

OR

2.    Provide at least fifty throusand dollars ($50,000) of capital investment in Caddo Parish.

OR

3. Provide an unmet need in Caddo Parish as evidenced by a current third party market study conducted by an approved vendor.

Meeting the Minimum Requirements For Consideration (above) does not guarantee an application meets the Constitutional Test (above). Rather, an application must meet the Minimum Requirements for Consideration before the IDB will conduct (or cause to be conducted) an analysis to determine if the project meets the required Constitutional Test. 

*La. Att'y Gen. Op. No. 15-0100 (Nov. 30, 2015) (Interpreting Board of Directors of the Industrial Development Board of the City of Gonzales, Louisiana, Inc. v. All Taxpayers, Property Owners, Citizens of the City of Gonzales, et al., 2005-2298 (La. 9/6/06), 938 So.2d 11)

Application Process

Applications will be accepted throughout the year.  Funding for the small business EDGP is limited and will be awarded on a first come first serve basis.  The Caddo IDB reserves the right to modify or discontinue the EDGP at any time for any reason. Outlined below is the current process for awarding EDGP grants.

Step 1. Applicant must submit a fully completed Pre-Application.  In order to reduce the burden on the applicant, the applicant must have, but is not required to submit the "Required Documentation" (outlined in the Pre-Application) when submitting the Pre-Application. 

 Step 2. The Pre-Application will be forwarded to the Underwriting Committee for review.  The Underwriting Committee meets monthly on the first Wednesday of the month at 11:30 to review Pre-Applications and Applications.  In order to be considered, Pre-Application must be submitted 10 business days prior to the next monthly meeting of the Underwriting Committee. If the project meets the Minimum Requirements For Consideration (outlined on the previous page) and appears likely to meet the Constitutional Test (outlined on the previous page), the Underwriting Committee will invite the applicant to complete the Application by submitting the Required Documentation.  The Pre-Application, along with the Required Documentation forms the full Application.

Step 3. The applicant must submit the Required Documentation within 10 business days of receiving the invitation from the Underwriting Committee. The Underwriting Committee will review the entire Application. In order for the Underwriting Committee to consider the full Application at its next meeting, the completed Application must be submitted 10 business days prior to the next monthly meeting of the Underwriting Committee. If the Underwriting Committee feels that the project meets the Minimum Requirements For Consideration and meets the Constitutional Test, the Underwriting Committee may vote to recommend the project to the entire Caddo IDB for consideration.

Step 4. The Caddo IDB meets monthly on the first Wednesday of the month at 12:00 p.m. in the 1st floor conference room of Government Plaza located at 505 Travis Street, Shreveport, LA, (unless there is no business to consider). In order for the IDB to consider a project recommended for approval by the Underwriting Committee at its upcoming meeting, the General Counsel of the IDB must receive the completed Application and written recommendation of the Underwriting Committee 10 business days prior to the IDB's next regularly scheduled meeting.  If the IDB finds and determines that the project meets the Minimum Requirements For Consideration and meets the Constitutional Test, the Caddo IDB may vote to approve the project.

Step 5. Upon receiving approval of the IDB, the applicant will enter into a cooperative endeavor agreement with the IDB providing for, among other things, the compliance and reporting obligations of the applicant.

NOTE: For this section, include information on expenditures (generally capital expenditures) related to physical improvements necessary prior to start of operations. For instance, include expenditures for construction/renovation wages, construction/renovation materials, equipment, and other items necessary before operations can start. If the project involves less than $1 million in Louisiana construction expenditures, this section can be left blank.  

* Year 1 includes the 12 months after the Construction Start Date (as indicated on Page 1).  Year 2 includes months 13-24, and so forth.

**Include in the far right column any expenditures associated with work performed outside of the state (items such as equipment purchased from out-of-state suppliers and modules constructed outside of the state and  transported in state for assembly).

* Year 1 includes the 12 months after the Operation Start Date (as indicated on Page 1).  Year 2 includes months 13-24, and so forth.

* Year 1 includes the 12 months after the Operation Start Date (as indicated on Page 1).  Year 2 includes months 13-24, and so forth.

Applicant must check the boxes next to each document acknowledging that the applicant has the specified documents. Applicant is not required to submit these documents until such time as the Underwriting Committee invited the applicant to submit the full application.

The Industrial Development Board of the Parish of Caddo, Louisiana, Inc. is a non-profit corporation authorized and established under Title 51 of the Louisiana Revised Statutes of 1950, as amended. All the information required for consideration of the approval of an Economic Development Grant is material to the evaluation of an applicant's request for financing. Caddo IDB will only consider awarding an EDGP grant when all information, in its sole discretion, demonstrates that the application meets the Constitutional Test and Minimum Requirements for Consideration. I acknowledge and agree that the Caddo IDB reserves the right, in its sole and absolute discretion, to request additional information. The entire contents of the Pre-Application and/or Application including any supplemental materials, may be subject to Louisiana Public Records Law upon submission to the Caddo IDB. I certify that, using due care, I know of no misstatement of material fact in the Pre-Application or Application materials. I further certify that I know of no material fact required to be stated in the Pre-Application or Application materials that would make the statements made therein inaccurate, misleading or mis-representative of the truth.