Whether it's financing for construction of a new facility or to provide working capital, North-west Louisiana offers an abundance of attractive financial pro-grams, ranging from tax-exempt industrial revenue bonds to out-right grants to conventional loans made available at highly competitive rates by the region's financial institutions.
Industrial Revenue Bonds: All political subdivisions in Northwest Louisiana are authorized to issue Industrial Revenue Bonds to build and equip industrial and commercial facilities for lease to manufacturers, warehouses, corporate headquarters and hotels. IRBs may be issued with the approval of the state's Bond Commission and Secretary of Commerce. No voter approval is required, and the bonds may be sold through public or private sale. The lease of the facility acquired with bond proceeds usually corresponds to the maturity of the bonds (30 to 40 year maximum depending upon the issuing organization) and at the end of the lease period the industry may negotiate to continue to lease, or may purchase the facility.
General Obligation Bonds:
With voter approval and the approval of the Louisiana Bond Commission and Secretary of Commerce, any political sub-division in Northwest Louisiana may issue up to $10 million (IRS limit) in general obligation bonds to build or equip an industrial facility. These bonds, secured by the full faith and credit of the issuing subdivision, must be sold by public sale. As with industrial revenue bonds, the industry has the rights to negotiate a new lease or may purchase the facility out-right at the end of the original lease (25-year maximum maturity of the bonds).
Ark-La-Tex Investment & Development Corporation: AIDC, a wholly owned subsidiary of The Coordinating and Development Corporation, has been certified by the U.S. Small Business Administration as a Certified Development Company under the SBA "503" program. Based upon this designation, AIDC is authorized to issue up to $500,000 in federally guaranteed, low interest debentures (for a maximum of 40 percent of the total financing requirements for a business venture's fixed asset financing).
Mid Continent Capital Corporation: Another subsidiary of The Coordinating and Development Corporation, the Mid Continent Capital Corporation can provide speculative venture capital for companies in a start-up mode.
Tri-District Development Corporation: This corporation, formed by the three state Planning and Development Districts in Northern Louisiana including The Coordinating and Development Corporation will provide low interest loans to eligible enterprises for such items as inventory, working capital, land acquisition, plant construction, equipment and other areas of business financing. This program operates as a revolving loan fund, and supplements other financing vehicles.
Conventional Commercial Loans: Area banks, savings and loan and other professional financing institutions work very closely with local communities and economic development organizations in their industrial development activities. Not only do these financial institutions aggressively compete among themselves for the privilege of assisting new or expanding industries, they have been invaluable allies in Industrial Revenue Bond financing for new projects, either as major purchasers of IRBs or in providing assistance in placing the IRB issues. The combined resources of the area's banks have been greatly enhanced by the passage in 1983 of a Multi-Banking Bill, and can provide ample financial resources for worthy projects.
