A new $1.1 million revolving loan program has been launched to help small businesses in the Baton Rouge area recover from the COVID-19 pandemic.
The fund, a partnership between the Baton Rouge Area Chamber, TruFund and the US Economic Development Administration, provides up to $250,000 to businesses, especially those with 50 or fewer employees and revenues below $3. millions of dollars. The loans will have terms ranging from 6 to 60 months, with interest rates between 0 and 10%. In some cases, loans were closed within 30 days. As businesses repay their loans, that money will be used to issue new loans.
The program is focused on companies affected by the pandemic, but Kim Carter Evans, vice president and regional general manager of TruFund, said companies that have done well are also eligible for loans.
“Some businesses have actually flourished and they need access to capital to sustain their growth,” she said.
TruFund is a non-profit community development financial institution that provides capital to small businesses and non-profit organizations.
Craig Gehring, founder and CEO of MasteryPrep in Baton Rouge, said he got a $50,000 loan from TruFund seven years ago when the test prep company was growing so fast he couldn’t. not meet the expenses.
“They took the time to understand our business; they took the time to understand our needs and helped us get through this,” he said. “It was a total lifesaver for the company.” At the time of the loan, MasteryPrep had less than $300,000 in revenue; now the company has about 10 million dollars in annual revenue.
Michael DiResto, executive vice president of BRAC, said the loan program’s goal is to create more success stories like MasteryPrep.
“You can’t take advantage of the opportunity if you don’t have the capital,” he said. “We hope this will significantly reduce the barriers to success.”
To apply, contact TruFund Business Development Officers Jay Gaudet at [email protected] or Juan Nathan at [email protected]. Small businesses can also call the TruFund Louisiana office at (504) 293-5550 or visit trufund.org.
