1. A. The Linked Deposit Program is funded to meet all current and anticipated application needs. The extreme changes in the interest rate environment in recent years have, on occasion, presented the treasury with a dilemma. Interest earnings on treasury deposits supporting the Linked Deposit Program have been so low that the rate buy down prescribed below would force the treasury to accept zero or negative earnings on its money. To preclude such events, a floor of 0.5 percent (0.005) is set as the lowest interest earnings accepted for treasury funds on deposit under the Linked Deposit Program, as determined by the state treasury. The buy down described, to the extent that it does not violate this floor, will be awarded on approval of an application.

2. B. Priority for application approval and funding shall be given as follows.

   1. 1. A eligible Louisiana business located in a very high unemployment area which creates one or more jobs shall receive a maximum of a 4 percent interest rate buy down.
   2. 2. A eligible Louisiana business located in a high employment area which creates three or more jobs shall receive a 3 percent interest rate buy down (less than three jobs shall receive 2 percent).
   3. 3. An eligible Louisiana certified disadvantaged business, disabled owned business, or research recipient of a Small Business Innovative Research Grant, which creates one or more jobs shall receive a maximum of a 3 percent interest rate buy down.
   4. 4. An eligible Louisiana business, in a low unemployment area that creates four or more jobs shall receive a maximum of a 2 percent interest rate buy down.
   5. 5. An eligible Louisiana business in a low unemployment area creating one to four jobs shall receive a maximum of a 1 percent interest rate buy down.
3. C. At no time shall the total amount of the dollars in the linked deposits in low unemployment areas exceed
   33 percent of the total available for linked deposits, unless otherwise specified by the treasurer.
4. D. Applications which provide a "but for" statement shall be eligible for a five year term on the linked deposit. All other applications are eligible for two year terms only.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with LA R.S. 51:2312.

Historical Note

HISTORICAL NOTE: Promulgated by Department of Economic Development, Economic Development Corporation, LR 25:412 (March 1999), amended by Department of Economic Development, Office of Business Development, Business Resources Division, LR 29:859 (June 2003).