Business and Industrial Development Companies (BIDCOs) are licensed and regulated by the Louisiana Office of Financial Institutions for the purpose of making loans to small businesses located and/or operating in the state.  BIDCOs are not authorized to take deposits and make only business loans.  Typically, a BIDCO would provide loans and growth capital to small business ventures considered too risky for traditional lenders.  BIDCOs may also specialize by investing more than 25% of their financial assistance portfolio in businesses owned by minorities, women, or disabled individuals or in businesses that operate in economically depressed areas. 

Loans made by BIDCOs can fill the gap between venture capital sources (equity investments), and traditional debt financing through commercial banks, industrial bonds, or government programs.  They have flexibility in the financing tools available to them, blending debt financing with equity and near-equity investments, and utilizing government guarantees to improve a company’s creditworthiness for traditional lenders. 

BIDCOs are designed to address moderate risk capital needs of smaller, growth-oriented companies.  BIDCOs help finance companies that require additional capital but are not expected to generate the high returns required by most venture capital companies. 

Many companies operate as both a CAPCO and a BIDCO.  If you would like further information on these programs, please contact Deputy Chief Examiner Chris White at (225) 925-4639.

Contact Personnel

Tim Robichaux

(225) 922-0878

Chris White

(225) 925-4639