VIDALIA, La. (Sept. 13) — BizCapital, the small business lending arm of private equity firm Advantage Capital Partners, has lent Louisiana Elastomer L.L.C. $6.5 million for construction of its 50,000-sq.-ft. startup production facility in Vidalia.
The loan does not entail any ownership of the new company on BizCapital's part, said a spokeswoman for Advantage. The funds include $4.2 million raised in connection with Louisiana's Certified Capital Companies program, with the rest raised through the federal New Markets Tax Credit program, Advantage said.
Louisiana Elastomer broke ground on its plant July 26, and expects to complete construction by the end of the year, according to President Michael Wells. The company will have an initial production capacity of 40 million pounds of recycled rubber annually, but the plant will be easily expandable to a maximum capacity of 100 million pounds, he said.