updated 11:00am (PDT) on 5/27/2020
Los Angeles City Small Business Toolkit
Small Business Resilience Toolkit


In light of the sweeping impact the COVID-19 pandemic is having on our small business community, the City of Los Angeles has responded swiftly and decisively to support our local, community businesses. The newly established Small Business Emergency Microloan 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 (click this link)

Ciudad de Los Angeles manual de resiliencia para pequeñas empresas
Manual de Resiliencia para Pequeñas Empresas

To apply, register through our secure log-in system. Please read through the information below prior to submitting an application. Contact information is available at the bottom of this page if you need further assistance.

Notice Regarding Scams and How to Protect Your Information




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)
*Loan term and rate will be determined based on the underwriting analysis and are subject to approval by the Loan Committee
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
  • Bank Statements (3 months)
  • Itemized Budget for Funds Requested
  • Copy of the Current Certificates of Insurance for Commercial Liability and Worker’s Compensation

Policy Guide for Los Angeles Small Businesses
Policy Guide for Los Angeles Small Businesses (pdf format)

For more information, email the EWDD Emergency Microloan Management Team at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 213-744-7130. To review a summary of the microloan, please refer to LA City Small Business Emergency Microloan Program Presentation.

EWDD is currently experiencing a high volume of applications, calls and emails. Please be assured that we understand your concern and will respond as quickly as possible.



return to the EWDD Resources for Angelenos Impacted by COVID-19 webpage