City of Los Angeles Small Business Loans Program

City of Los Angeles Small Business Loans Program


EWDD designed the Small Business Loan Program in order to provide financing to viable small businesses that private lenders cannot accommodate. Whether your business is a start-up or an existing business that would like to expand, loan funds can be used for reasonable and eligible business operation costs, including, but not limited to, inventory, equipment, working capital and leaseholder improvements.

The ultimate goal of the Small Business Loan Program is job creation and the borrower is required to create jobs in the City of Los Angeles. If you are interested in applying for one of EWDD's loan programs, please fill out EWDD's Loan Program Intake Form so that we can better assist you!





PROGRAM REQUIREMENTS


  • Eligibility Criteria

    Eligibility Criteria

    • Annual revenue must not exceed $10 million and have no more than 500 employees, depending on business NAICS code

    • Must create one permanent full-time equivalent job for every $35,000 in financial assistance received from the City

    • Out of the total jobs created, 51% must be fulfilled or made available to low and moderate-income persons

    • Business must be located in the City of Los Angeles*. Please use the City of Los Angeles, Department of City Planning Online Zoning Tool to determine if your commercial location is located within LA City’s boundaries (*home-based businesses are not eligible)

    • Applicant that has recently been approved for similar financing may not apply

    • Applicant, in many cases, will need to show evidence/justification for not being able to obtain similar financing elsewhere
  • Important Documentation

    Important Documentation

    • Business Plan or an Executive Summary
    • Breakdown of Sources and Uses of Funds (budget)
    • Projections for 3-5 years, if available
    • Business Tax Registration Certificate, if available
    • Personal Financial Statement
    • Personal Income Tax Returns for 2 years
    • Business Tax Returns for 1-2 years, if/when applicable or available
    • Interim/Fiscal Year End Profit & Loss and Balance Sheet, if/when applicable or available
    • Resumes, if available

    Additional documentation, if/when applicable or available:
    • Commercial Lease Agreement
    • Commercial Liability Insurance
    • Workers Comp Insurance
    • Other documentation as necessary or required
  • Loan Terms

    Loan Terms

    Business Revenue Limits:
    Up to $10,000,000.00*
    *Depending on business NAICS Code

    Maximum Number of Employees on Payroll:
    500 Employees*
    *Depending on business NAICS Code

    Job Creation/Retention or Area Benefit:
    Required

    Loan Fee:
    2%*
    *Additional fees may apply

    Application Fee:
    $250, non-refundable
    Loan Limits:
    $50,000 to $700,000*
    *EWDD may consider a smaller or a larger loan amount if it deems appropriate

    Term/Amortization:
    3-20 Years*
    *Depending on the use of funds/useful life of the asset

    Interest Rate:
    4% - 10%*
    *Depending on the WSJ Prime rate and risk

    Program Parameters:
    EWDD operates as a direct lender utilizing funds from the EDA. This program is available to businesses that recently have not been able to qualify for the conventional bank financing. On a best efforts basis, each loan is supported with collateral which may include business assets such as cash, accounts receivable, inventory, equipment, intellectual property and/or real property.

    Personal Guaranty from owner(s) is required. Minimum Owner’s Capital Injection: 10%



CONTACT


If you are interested in applying for one of EWDD's loan programs, please fill out EWDD's Loan Program Intake Form so that we can better assist you! EWDD BusinessSource Centers are also able to assist with more information and in preparing applications. Centers are located throughout the city - find the center closest to you!


BusinessSource Center Locations






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