Best business grants in Louisiana

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    Chris Godfrey

    Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.

    Small business grants can provide crucial funding for Louisiana entrepreneurs seeking to launch a startup or grow their current business.  Although business grants are typically difficult to secure and often come with strict qualifying rules, they have major benefits that are very hard to beat: Grants are free money. You don’t have to repay the funds. There’s no interest to pay. No debt to carry.

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      Best business grants available in the state of Louisiana:

      STEP grants

      The STEP (State Trade Expansion Program) grant aims to help Louisiana small businesses generate new export revenue and create or retain jobs resulting from sales to foreign markets. Qualifying organizations may be reimbursed for expenses associated with participation in trade shows, trade missions and export training workshops, as well as the costs of shipping sample products and the expenses incurred by compliance testing and other activities as determined by the US Small Business Administration (SBA). The program offers a 90% reimbursement rate on eligible expenses, with a maximum payout per company of $10,000.

      Zach grant

      The Zach grant program provides $2,500 to one small company per year. Application involves the creation of a three-minute video explaining why you founded your company. To win the grant your video must be imaginative, unique, and of excellent quality. The Zach grant is open to anyone who likes and follows Fundera on Facebook, uploads a YouTube video submission, sends it to Fundera, and shares it on social media.

      SBIR and STTR grants

      Overseen by the US Small Business Administration, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs encourage small organizations to engage in Federal Research and Research and Development initiatives. Almost a dozen federal agencies list grant opportunities on the SBIR website. Funding amounts vary by project. To be eligible, your business must be a US-based for-profit entity with less than 500 employees. 

      Other small business grants in Louisiana

      The Pelican State has an abundance of grant opportunities for business owners and budding entrepreneurs:

      US Grants – Louisiana

      US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, state and federal government agencies. Available Louisiana small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc. 

      Grant Watch

      Louisiana Grantwatch operates a directory of current grant opportunities, although not all may be specific to Louisiana-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.

      MORE: Grants for disabled business owners and veterans.

      LED small business grant

      The Louisiana Economic Development department (LED) offers a range of small businesses programs that are designed to foster entrepreneurship, create jobs and stimulate economic activity. The state’s support strategy includes grants, loans, tax incentives and specialized programming for small business owners.

      Small business grants in Louisiana for minorities

      Many business grants are designed to level the business playing field, making it easier for disadvantaged business owners and entrepreneurs to get the funding they need.

      Minority business development agency

      The Minority Business Development Agency (MBDA) provides a gateway to federal grants and business initiatives that specifically support minority entrepreneurs and are part of a total package valued at $500 billion per year. Additionally, MBDA helps organizations run Minority Business Centers across the US, providing services like business advice, help finding contracts, and financial support to minority-owned businesses. 

      MORE: Grants for minorities.

      National association for the Self-Employed Growth Grants

      The National Association for the Self-Employed (NASE) provides business growth grants of up to $4,000 to members. Since 2006, nearly $1,000,000 has been awarded, with grants used for marketing, advertising, hiring employees, expanding facilities and other specific business needs. All minorities may apply, but you must be a member of NASE to participate. (Membership fees may be applicable).

      Founders First Job Creators Quest Grant

      Founders First CDC offers a number of regional and national grant programs. Total grant awards vary from $100,000 to $25,000 shared across multiple winners. Participants must identify as one of the following to apply for these programs: Asian, Black or Latinx women, LGBTQ+, military veterans. 

      Business grants in Louisiana for women

      Some small business grants in Louisiana are specifically tailored to meet the needs of female entrepreneurs:

      Amber Grant for women

      The WomensNet Amber Grants awards multiple grants per year to women wishing to start or grow their own business. $10,000 is offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category. 

      You can apply for any of these grants by completing an online application and paying a $15 entrance fee.

      MORE: Grants for women.

      IFundWomen Grant

      IFundWomen is a grant marketplace that matches funding and coaching for women-owned businesses to enterprise grant partners such as Visa, Unilever, Diageo, Adidas and American Express. You complete one application and let the program match your needs to available grants in their database. If your business is a match, you’ll receive a notification and invitation to apply. 

      MORE: Grants for black women.

      What are the alternatives to grants?

      Business loans may provide an alternative source of funding for your business or new venture. Also look at specific options for business loans in Louisiana. Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:

      Term loans

      You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.

      Business line of credit

      A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.

      Invoice financing

      Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised.  Your invoices act as security for the loan, no added collateral required.

      Equipment financing

      Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright. 

      Merchant cash advance

      Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.

      Revenue-based financing

      Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.

      SBA microloans 

      Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.

      FAQs

      There are many ways to finance businesses in Louisiana. Grants can deliver free money to organizations, although they may be slow to obtain and you will usually have to adhere to strict qualifying rules, with the cash earmarked for a specific business purpose. Alternatively, small business loans are typically much faster and easier to obtain, with some types of borrowing available without providing collateral and even if your credit score is weak. 

      The award value of grants in Louisiana varies from donor to donor and according to the type of project the funds are meant to support. Most grants are worth a few thousand dollars, but some federal funding programs can offer up to $250,000 to businesses that conduct research and technical development programs for the US government.

       

      Louisiana federal and state grants can be used for a wide range of purposes, such as export programs, rehabilitating downtown areas, researching advanced technologies, increasing manufacturing, improving education, creating jobs, training employees and more.

      Get started with Swoop

      Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.

      Written by

      Chris Godfrey

      Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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