The application process is now open and will run through Wednesday, December 14, 2022. 

The Hunter administration announced the first round of this initiative in 2020, prior to Hurricanes Laura and Delta, as a way to support local, small businesses negatively affected by COVID-19. The Lake Charles Small Business Stabilization Fund is made possible by CDBG-CV funding. A second round of funding was announced in March 2021.

“Community Development Block Grants, or CDBG, are federal funds that have specific eligibility requirements shaping how we are able to award the funds at the local level,” said Mayor Nic Hunter. “When we originally announced this program in 2020, we were proud to have a program making a direct, positive impact for local, small businesses that have been so heavily impacted COVID-19. This program became even more critical following Hurricanes Laura and Delta and the subsequent disasters of 2021. Small businesses are vital for the survival of our neighborhoods and, like so many, were dealt several devastating blows in 2020 and 2021. We are committed to being a part of helping get them back on their feet because when you help save a small business, you don’t only help save that business owner; you help save all of the employees and their families connected to that business.” 

Forgivable loans, ranging up to $5,000, will be offered through the program. 

The sign-up form is available on the fifth floor of City Hall (326 Pujo Street), Monday through Friday, from 9 a.m. to 4 p.m., and on the City’s homepage at www.cityoflakecharles.com. It must be completed and submitted by the December 14 deadline. Only businesses located in the corporate limits of Lake Charles will be eligible and they must have a “brick and mortar” location dependent on foot traffic for business. Business owners who complete the sign-up form will be contacted by City personnel to arrange a pre-screening interview.

Applicants will need to provide financial information. Eligibility determination will be based off income requirements established by federal guidelines.

The first round of disbursements were completed in February 2021 and through this fund 24 locally-owned small businesses were provided with forgivable loans of $,5,000 each.

The second round of disbursements were completed in September 2021 and provided direct support to seven locally-owned small businesses. Forgivable loans of $5,000 were granted to successful applicants.

Eligibility

In order to qualify for the Lake Charles Small Business Stabilization Fund Program, businesses must meet the following criteria:

  • It must be a for-profit business located within the city limits of Lake Charles.
  • It must employ twenty (20) or fewer full-time equivalent employees.
  • It must have been operational for at least twelve (12) months prior to March 1, 2020.
  • The business’ annual revenue for the most recent business tax filing must not have exceeded $500,000. 
  • It must provide proof of economic hardship.
  • It must be a physical storefront or place of business in a commercial-designated facility.
  • It must not have any outstanding property standards, building code or other lien encumbrances from the City of Lake Charles within a 12- month period leading up to the application submittal.
  • If owner(s) own their property their property taxes must be current.
  • The owner(s) must be at least eighteen (18) years of age.
  • Current Occupational License for 2021
  • In order to comply with CDBG requirements, business must commit to retaining at least one employee from a low-moderate income household, defined as 80% or below Area Median Income (AMI). At least one employee must be from a household that meets the criteria below:

Household Size

80% of Area Median Income

1

$40,500

2

$46,300

3

$52,100

4

$57,850

5

$62,500

6

$67,150

7

$71,750

8+

$76,400

INELIGIBLE BUSINESS TYPES

The following applicants/businesses are ineligible to apply for a grant under this program:

  1. Non-profits;
  2. Home-based businesses;
  3. Liquor and tobacco stores;
  4. Pawn Shops;
  5. Firearm or other weapons dealers;
  6. CBD distribution stores;
  7. Adult entertainment;
  8. Independent professional services (insurance agents, brokers, doctors, dentists, lawyers, accountants, financial services, etc.)
  9. Junkyards
  10. Storage Facilities
  11. Chains
  12. Franchises not founded in the City of Lake Charles