By BF Editors
From the July / August 2024 Issue
Louisiana has taken the nation by storm to its thriving business climate. Due to the pro-business environment of Louisiana, there is a commitment to success through incentives, cost-saving solutions, and economic development strategies at all levels ranging from state to local. Louisiana’s infrastructure, workforce, and geographic advantages offers numerous opportunities for companies that are new, expanding, relocating, or just starting up.
“Louisiana’s strategic advantages in infrastructure and logistics, with an extensive port system and a central southern U.S location, position it as a pivotal hub for both global and domestic commerce. The state’s prime location boasts six interstate highways, six Class 1 railroads, six deepwater ports, and seven primary airports, providing a diverse range of options for efficient inbound and outbound logistics,” according to the Louisiana Economic Development (LED) office.
The key to Louisiana’s business-oriented climate is its diverse, experienced, and multi-faceted workforce that is supported by a wide range of education partnerships for both public and private schools. LED FastStart, a program set to promote workforce development with recruitment and training, uses cutting-edge technology to recruit, train, and sustain a skilled workforce, at no cost to companies.
According to LED, “The Mississippi River serves as a gateway to international markets via the Gulf of Mexico and provides direct access by barge to 17 states. The state’s ports offer specialized intermodal transportation, playing a pivotal supply chain role in facilitating imports and exports and fostering trade relationships with countries worldwide.”
SB 494, signed on June 11, 2024, establishes a private sector-led board — the Louisiana Economic Development Partnership (LEDP) — charged with developing an economic development strategic plan and advising on policies, programs, and initiatives that promote economic growth in the state. It also provides the agency with flexibility to operate at the speed of business by exempting it from state procurement and technology services bottlenecks.
Louisiana Cultivates Biotech With Incentives And Seed Funding
Backed by programs empowering research and innovation, bioscience startups and established institutions are accelerating Louisiana’s emergence as a major hub of scientific exploration and collaboration.
Why have innovators chosen the state to advance groundbreaking software that decodes viruses as they spread, invest millions of dollars in radiopharmaceutical centers, and create organ-on-a-chip technology that accelerates drug development?
Some might credit the state’s warm and welcoming culture. Pragmatists point to another type of welcome: LED’s leading-edge incentive package, centered around a research and development tax credit. The credit covers up to 30% of qualified expenses, such as wages, supplies and contract research costs.
New Orleans-based Obatala Sciences is one of many biotech entities utilizing tax credits and funding, with Founder and CEO Dr. Trivia Frazier saying, “The R&D tax credit that we’re able to take advantage of has really helped us in times of need.”
The company also made use of funding from LED through the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
“We’ve received millions in federal funding to continue commercializing new products. We have expanded, and we are at our second stage of growth. That definitely is a success story, I would say, from an SBIR standpoint,” Frazier said.
The SBIR/STTR programs cover three phases:
- Phase I: Awards of up to $295,924, to establish the feasibility and commercial potential of the proposed products or services.
- Phase II: Awards of up to $1.97 million to continue the R&D work from Phase I.
- Phase III: Typically involves a federal contract for the startup’s product or service but does not include cash awards.
LED recently received a second round of state funding for SBIR and STIR, making supplementary state funding available through the Louisiana Innovation Retention Grant (IRG) program.
Offering awards of up to $100,000 for eligible businesses, the IRG program seeks to:
- Help Louisiana support and retain STEM start-up companies and their workers.
- Demonstrate the state’s support for business innovation by supplementing the federal research dollars received by Louisiana small businesses.
- Increase investment in research conducted during Phase I of the federal SBIR program, making Louisiana small businesses more competitive for Phase II funds.
- Encourage establishment and growth of high-quality, locally owned technology businesses throughout the state.
“Economic development in Louisiana is as much about supporting existing businesses as it is about attracting new businesses here,” LED Secretary Susan B. Bourgeois said. “The Innovation Retention Grant program helps to ensure that start-ups made in Louisiana, stay in Louisiana.”
For more information, visit opportunitylouisiana.com.
