LA CARES Corps - Connecting L.A. Businesses to Federal SBA Loans during COVID-19
LA CARES Corps is a partnership between the City and County of LA to provide small businesses with the help they need to apply for federal loans under the CARES Act

updated 7/08/2020

What is the CARES Act?
The new Coronavirus Aid, Relief, and Economic Security (CARES) Act provides $349 billion in Small Business Administration (SBA) loans. These loans are meant to provide emergency assistance to businesses affected by the coronavirus (COVID-19) pandemic. In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak, including the Economic Injury Disaster Loans (EIDL), Emergency Economic Injury Grants, and the Paycheck Protection Program (PPP).

Economic Injury Disaster Loans (EIDL)
A low-interest loan with an optional $10k advance
EIDLs are loans of up to $2 million with a 3.75% interest rate for businesses and a 2.75% interest rate for nonprofits with terms of up to 30 years. This loan offers an optional $10,000 advance as a non-repayable grant within days of a successful application.

Paycheck Protection Program (PPP)
A loan program that provides loan forgiveness for retaining employees
The PPP is a 100% federally guaranteed loan to help small businesses keep workers on payroll for a period of 8 weeks during this crisis. The loans can be up to $10 million with a 1.0% interest rate with a term of two years. It will be fully forgiven if at least 60% of the entire loan is allocated towards payroll, funds are used for eligible uses, and employment and compensation levels are maintained. Borrowers are required to expend the entirety of their PPP loans in 24 weeks or by December 21, 2020, whichever comes first.

NOTE: Borrowers may apply for both loan options as long as there is no duplication in the uses of funds
Loan Terms Economic Injury Disaster Loan (EIDL) Paycheck Protection Program (PPP)
Program Type loan loan
Who is Eligible Businesses with 500 or fewer employees*

Sole proprietorships
Independent contractors

Private Non-profits
501(c)(19) Veterans Organizations

*Businesses in certain industries may have more than 500 employees if they meet the SBA’s Size Standards for those industries
Any small business that meets SBA’s Size Standards
(either the industry based sized standard or the alternative size standard of 500 or less employees)

Sole proprietorships
Independent contractors

501(c)(3) Non-profits
501(c)(19) Veterans Organizations
Tribal businesses with the greater of:
- 500 employees, or
- if more than 500, meets the SBA Size Standard

small businesses in the hospitality and food industry (NAICS Code that begins with 72) with more than one location could also be eligible if their individual locations employ less than 500 workers

Eligible Uses fixed debts (rent, etc.), payroll, accounts payable, and other operating expenses payroll costs including benefits, mortgage interest, rent, utilities
Interest Rate 3.75% for small businesses and 2.75% for nonprofits 1%
Loan Size up to $2 million up to 2.5 x average monthly payroll cost, up to $10 million
Loan Term up to 30 years 2 - 5 years
Repayment Deferral 12 months 6 months
Fees none none
Collateral no collateral is required for loans of $25,000 or less none
Personal Guarantees up to $200,000 can be approved without a personal guarantee none
Forgivable portion up to $10,000 grant
if it is used for authorized reasons
all IF at least 60% is used on payroll and remainder on eligible uses
forgiveness is also based on the employer maintaining or quickly rehiring employees and maintaining salary levels; forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Expiration Date December 30, 2020 August 8, 2020

Ready to Apply?



Start preparing a PPP Borrower Application Form and contact a Participating Lender.
(apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Find a lender.)
*Businesses in certain industries may have more than 500 employees if they meet the SBA’s Size Standards for those industries

Need Help Applying for SBA Loans?
Contact the LA County Business and Worker Disaster Help Center
  • Visit:
  • Call: 833-238-4450
  • Engage on social media: @LACHelpCenter on Twitter, Facebook, and Instagram
  • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

For additional assistance applying for a Los Angeles City loan, a SBA loan, or a Federal Financial program, please contact your nearest BusinessSource Center. During the COVID-19 outbreak it is more important than ever to follow safety standards, stay informed on updated policy changes and regulations protecting the health and well-being of both workers and customers. Download the City of Los Angeles' Policy Guide for LA Small Businesses here.

return to COVID-19 Resources