The Los Angeles County Development Authority is administering a program offering low-interest loans of up to $20,000 to small businesses affected by COVID-19.
The Small Business Recovery Loan Program aims to provide easy-to-access financial relief to small businesses suffering an acute drop in revenue to help them retain employees and keep their businesses running.
“The current COVID-19 pandemic is impacting small business economies. However, the county has been taking swift action to support business owners and their employees during this time,” said Emilio Salas, acting executive director of the LACDA. “This new loan program will be a helpful addition to the resources available.”
Businesses eligible for the program include for-profit enterprises with 25 or fewer employees in an unincorporated part of the county or a city participating in the county’s Community Development Block Grant Program.
Loan proceeds may be used for working capital, including payroll or rent. The interest rate is based on the lower of 4% or 75% of the Wall Street Journal Prime rate and is currently set at 2.44%.
Loans will carry a term of five years and principal and interest may be deferred for up to 12 months. There is no loan origination fee and no collateral is required to secure the loan.
Businesses can obtain an application at bizrecoveryloans.lacda.org, and more resources for small businesses can be found at dcba.lacounty.gov.