In order to continue to assist small businesses affected by the coronavirus, the Los Angeles County Board of Supervisors has launched the Small Business Recovery Loan Program.
“Our county departments are working diligently to provide every support possible to all of our county businesses and residents, and I urge those in need of this assistance to please seek it out,” Supervisor Hilda L. Solis, who represents the 1st District, said during Wednesday’s daily news conference.
The program, set to be administered by the Los Angeles County Development Authority, provides financial relief to the small businesses primarily impacted by an acute downturn in revenue caused by an unforeseen emergency out of their immediate control.
Using the county’s existing Economic Development Administration Loan fund as the primary source of funding, this program is expected to ensure businesses stay afloat by preventing a chain reaction of reduced spending, inability to pay bills, job losses and closures.
For-profit businesses with 25 or fewer employees that are either located within the unincorporated areas of L.A. County or in a city participating in the county’s Community Development Block Grant Program are eligible, which means businesses in the city of Santa Clarita are ineligible.
Proceeds from the loan can be used for working capital, including payroll or rent.
The maximum loan amount is $20,000 with a 5-year term, while minimum interest rates are authorized by the EDA or Wall Street Journal Prime, whichever is lower. While principal and interest are set to be deferred up to 12 months, loans can be prepaid, in part or in full, at any time without penalty. There is also no loan origination fee, nor collateral needed to secure the loan.
For more information on the Small Business Recovery Loan Program, contact Carolina Romo, Supervisor at LACDA, at 626-296-6298 or by email at [email protected]. To obtain an application, visit bizrecoveryloans.lacda.org, while additional resources for small businesses can be found at dcba.lacounty.gov.