Provides for the Louisiana Minority Business Development Fund (OR +$25,000,000 GF See Note)

House Bill 829 establishes the Louisiana Minority Business Development Fund as a new Chapter 70 of Title 51 of the Louisiana Revised Statutes and creates a revolving loan program administered by Louisiana Economic Development. The fund consists of legislative appropriations, loan repayments with interest, collected fees, investment income, and gifts or grants from federal agencies and private sources. The legislation mandates an initial capitalization of twenty-five million dollars subject to legislative appropriation and requires the fund to remain separate from the state general fund without reverting to general revenues at fiscal year-end. The direct loan program makes capital available for working capital, equipment purchases, leasehold improvements, inventory, technology infrastructure, business acquisitions that maintain in-state operations, and high-interest debt refinancing. Loans range from a five thousand dollar minimum to five hundred thousand dollars for established businesses, with the secretary authorized to approve loans up to seven hundred fifty thousand dollars for businesses demonstrating exceptional economic impact. Interest rates are fixed at three percent for loans of one hundred thousand dollars or less, four percent for loans up to two hundred fifty thousand dollars, and two percent below the prime rate not exceeding five percent for larger loans. Terms do not exceed fifteen years, with up to a twenty-four month deferred repayment period for businesses in operation fewer than thirty-six months.

The legislation directly affects minority-owned businesses meeting specific criteria as "eligible businesses," defined as for-profit entities majority-owned by minority persons, in operation at least twelve consecutive months with fifty or fewer full-time employees and annual revenues not exceeding five million dollars. Minority persons include African Americans, Hispanic Americans, Asian Pacific Americans, Native Americans, and women-owned businesses regardless of race or ethnicity. The bill impacts Louisiana Economic Development by requiring employment of a minimum five full-time employees dedicated to fund administration, including at least one loan officer each for northern Louisiana, central Louisiana, the New Orleans metropolitan area, and the Baton Rouge metropolitan area. The department must dedicate not less than ten percent of the fund's annual administrative budget to free or subsidized technical assistance covering financial literacy, business plan development, marketing assistance, certification procurement, legal compliance guidance, and mentorship pairing. Collateral requirements are flexible and may not disqualify applicants solely due to insufficient traditional collateral, with acceptable alternatives including business equipment, accounts receivable, personal guarantees, and liens on future contract revenues. The streamlined application process requires written decisions within sixty calendar days and permits applicants to appeal denials to the secretary within thirty days.

This legislation operates within the broader economic development framework of Louisiana Revised Statutes Title 51 and interacts with existing state agencies and federal programs. The statute requires the department to coordinate with the Louisiana Housing Corporation, the office of financial institutions, and Louisiana Works to align economic development efforts for minority communities and mandates active pursuit of federal grants and matching funds from Small Business Administration programs, United States Department of the Treasury Community Development Financial Institution programs, and Economic Development Administration grants. The legislation reflects constitutional authority under Article III, Section 18 of the Louisiana Constitution regarding the legislative appropriations process and the governor's signature power. The statute addresses documented systemic barriers to capital access for minority-owned businesses and references the racial wealth gap as a consequence of historical discrimination, establishing legislative findings that support the program's economic development purpose and anticipated tax revenue generation, job creation, and community wealth building benefits. Annual reporting requirements to the legislature by February first include application statistics, geographic distribution by parish, racial and ethnic breakdown of recipients, industry sectors, loan amounts, default rates, economic impact assessments, and recommendations for improvements. Administrative expenses are capped at eight percent of the fund's average annual balance.