Martinez Fresh Fruit Sidewalk Stand
EWDD designed the Microloan Program in order to provide financing to viable Microenterprises and Small businesses that private lenders are not able to 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.


ELIGIBILITY CRITERIA
  • Annual revenue must not exceed $1 million* and have no more than 25 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*
    (*some exceptions may apply; the required number of jobs is rounded up)
  • 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
    (business location must not be a Residential Property, the City cannot finance a home-based business)
  • Business must have an “Active” Business Tax Registration Certificate filed with the Los Angeles Office of Finance
  • Applicant must show evidence of not being able to obtain financing elsewhere such as a Bank or a Credit Union. Being declined for EIDL/PPP/On-line Lender loan does not qualify towards this requirement.
    (provide lender loan declination letter, etc.)

 

IMPORTANT DOCUMENTATION
  • Business Plan
  • Breakdown of Sources and Uses (budget)
  • Projections (3-5 years)
  • Business Tax Registration Certificate
  • Commercial Lease Agreement
  • Commercial Liability Insurance
  • Workers Comp Insurance (if applicable)
  • Personal Financial Statement
  • Personal Income Tax Returns (2 years)
  • Business Tax Returns (1-2 years, if available)
  • Business Financial Statements (FYE & Interim)
  • Resumes
MICROLOAN TERMS
Loan Limits:
$5,000 to $50,000
Term/Amortization:
1-5 Years
Interest Rate:
7% - 9%
Program Parameters:
- EWDD operates as a direct lender utilizing CDBG funds from HUD. This program is available to businesses that do not qualify for 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 is required from all owner(s) with 20% or more in ownership.
- Minimum Owner’s Capital Injection: 10%* (*minimum capital injection requirement may be higher that 10% and will depend on the use of City loan funds)
Business Revenue Limits:
Up to $1,000,000.00* (*depending on business NAICS Code)
Maximum Number of Employees on Payroll:
25 Employees*
Job Creation:
Required (some exceptions may apply)
Loan Fee:
1%
Application Fee:
$250.00, non-refundable
Applications are available upon request. For more information, please contact Alex Lakshtanov, EWDD Industrial and Commercial Finance Officer, at 213-744-9368 or This email address is being protected from spambots. You need JavaScript enabled to view it..



return to Financing Programs