Debt and equity are two methods that can help you attain the capital your business needs. Whether your goal is growing your business, starting a new business venture, or simply sustaining your business, both options offer viable solutions for business owners to achieve their business financing goals.
Debt Financing
Debt financing is the process of borrowing money and paying it back with interest, most commonly in the form of a business loan. Loans can be structured as either a term loan, closed-end loan, or line of credit.
Equity Financing
Equity financing means receiving money from an investor in return for an ownership stake in your company. These types of investments are typically long-term in nature, ranging from 10 to 20 years.
LED’s SSBCI Programs
LED offers both debt and equity financing for Louisiana small businesses through the State Small Business Credit Initiative (SSBCI), an economic stimulus program that uses federal dollars to leverage private investment in existing and start-up businesses through loan and equity programs. Louisiana launched five SSBCI Programs in April 2023: two equity programs and three debt programs using federal funds.
To learn more about these programs and which program may best serve your business financing needs, take the quiz at SSBCI Quiz.
