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

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
Term
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 Certification
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
Credit
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
Location
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)
Collateral
Evaluated on a case-by-case basis
Required Guarantors
All business owners who hold 20% or more ownership must guarantee the loan
Co-Signer
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 EmergencyLoans@lacity.org or call 213-744-7130.