The City of Los Angeles Gap Financing Program aims to support equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention. Forgivable grants and loans are available for qualified projects ranging from $500,000 to $1,500,000.

The Gap Financing Program will fund economic development projects involving the acquisition, new construction, and/or substantial rehabilitation of commercial, industrial, and mixed-use developments (commercial component only). Funded projects will focus on developing:
The Economic and Workforce Development Department seeks to fund qualified and shovel-ready projects that will provide economic development and community benefits while ensuring that the project is eligible at the program and underwriting levels. Potential projects must start construction within 18 months of the forgivable grant agreement/loan agreement execution to ensure gap financing investment dollars are deployed in a timely manner for maximum community benefit.

Do any of these questions apply to your proposed project? If you answer "YES" to most of these questions, your project might be a good candidate for gap financing. For additional information, please fill out EWDD's Loan Program Intake Form so that we can better assist you!

A “funding gap” is the difference between the cost of a project and the committed funding sources. Also referred to as bridge or interim financing, gap financing is a short-term loan for the purpose of meeting an immediate financial obligation until a longer-term financial loan can be secured. EWDD offers this type of financing for commercial projects, industrial projects, and the commercial or industrial portion of mixed-use projects.

Types of eligible recipients include partnerships, corporations, sole proprietorships, public agencies, and non-profits with a demonstrable record of operations.

The goal of the Gap Financing Program is to support the equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention.

Potential projects must be shovel ready, meet CDBG Program Underwriting requirements, and must be located within the City of Los Angeles. Use the LA City Neighborhood Info Tool to determine the location of your business or development project.

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!