COVID-19 UPDATE: LA City Small Business Emergency Microloan Program

April 8, 2020


Los Angeles City Small Business Emergency Microloan Program
The City of Los Angeles has just recently established the Small Business Emergency Microloan Program. This program now provides financing needed to strengthen small business enterprises in this time of acute need that have been affected by the COVID-19 outbreak.
Businesses that meet the criteria below may apply online for a
City of LA Small Business Emergency Microloan

To apply, register through our through the city’s secure log-in system. Below is the information you will need to know prior to submitting an application.


Microloan Terms 

Loan Limits

  • $5,000 to $20,000

 Interest Rates

  • Option 1:  0% for a term of up to 18 months,
      with repayment deferred for up to 6 months

  • Option 2:  3% for a term of up to 5 years,
      with repayment deferred for up to 12 months (for profit businesses)

  • Option 3:  2% for a term of up to 5 years,
      with repayment deferred for up to 12 months (for tax-exempt businesses)

Prepayment Penalty

  • None


  • 18 months to 5 years

Loan Fee

  • No fee

Admin Fee

  • No fee

Application Fee

  • No fee

Eligible Uses

  • Working capital only

Loan-to-Value Ratio

  • 100%

Eligible Borrowers

  • For-profit and tax-exempt businesses in the City of LA with 100 or fewer employees that have been negatively impacted by the COVID-19 outbreak and will make their best effort to continue or re-establish their business operations and employees

Borrower Eligibility

  • Business must have a Business Tax Registration Certificate with the City of Los Angeles' Office of Finance that was filed prior to March 01, 2020


  • There is no credit minimum, however the principal business owner(s) must have reasonable and responsible personal credit history and an acceptable explanation for any derogatory marks
    Bankruptcies and debt write-offs must be at least 12 months old

Cash Flow

  • Businesses must show that historical profits would have been sufficient to service the requested debt and that they have been impacted by the COVID-19 outbreak


  • Primary business operation must be physically located in a commercial–use building within City of Los Angeles boundaries
    (please use this City of LA online zoning tool to determine business location)


  • Evaluated on a case-by-case basis

Required Guarantors

  • All business owners who hold 20% or more ownership must guarantee the loan


  • A co-signer with reasonable credit and sufficient income to re-pay the loan can be included as a guarantor to mitigate weaknesses in the loan request


Required Documentation
  • Complete Loan Application

  • Business Tax Returns (1 year, if available)

  • Interim Business Financial Statement

  • Personal Financial Statement

  • Personal Tax Returns (1 year)

  • Bank Statements (3 months)

  • Itemized Budget for Funds Requested

For more information, email the EWDD Emergency Microloan Management Team at or call 213-744-7130.



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