A little-known provision in Louisiana's HB2 budget bill makes up to $15 million available for restaurant owners willing to work with local governments on capital projects.
Most Louisiana restaurant owners don't realize that a provision buried deep in the state's capital outlay budget—HB2—may open a funding door for their infrastructure needs. The Local Government Assistance Program, authorized under Section 1(A) on page 7 of the bill (project 578163), appropriates up to $15.1 million in state capital outlay funds specifically designed to help small businesses like restaurants improve their facilities and operations.
The Local Government Assistance Program allows state capital funds to flow to local governments and non-state entities—including small businesses—for infrastructure and capital improvements. The key mechanism is a "cooperative endeavor agreement," a legal partnership between a restaurant and its local government. These agreements are administered by the Office of Facility Planning.
In practical terms, this means a restaurant owner could potentially partner with their city or parish to fund projects like kitchen upgrades, HVAC systems, roof repairs, plumbing overhauls, or other capital improvements that might otherwise strain cash flow or require expensive borrowing.
The program is designed for restaurants operating through or alongside local government-sponsored projects. This typically includes:
The statewide pool is capped at approximately $15.1 million, so funds are limited and competitive.
The funding window runs for Fiscal Year 2027, commencing July 1, 2026, and ending June 30, 2027. This is the operational period for the appropriation.
One critical detail: if your project qualifies as a "Priority 5" bond, you'll need to secure a non-cash line of credit before your award is finalized. This is a technical requirement that your accountant or lender should understand, but it's worth knowing upfront.
If you've been postponing necessary capital work because financing is tight, this program offers an alternative path—but it requires initiative. You'll need to approach your city or parish government to explore whether a cooperative endeavor agreement makes sense for your situation. Not every restaurant will qualify, and not every local government has prioritized this program, but for those in the right position, it could mean state-funded infrastructure improvements with minimal or no debt to your business.
The first step is a conversation with your local economic development office or city/parish administrator to understand whether your restaurant and location fit the program's framework.
Source: Louisiana HB2, Capital Outlay Budget; Local Government Assistance Program, Section 1(A), page 7, project 578163.