The Los Angeles County Development Authority (LACDA) has launched the Small Business Stabilization Loan Program to provide eligible businesses with loans ranging from $50,000 to $3 million at a fixed Wall Street Journal prime rate, currently at 3.25%.
Businesses interested in applying for the program must have been in operation for at least two years and seeking working capital, equipment purchases, real estate acquisition, or refinancing of existing loans at higher interest rates. Loan terms are set at:
- Five–seven years for working capital.
- Up to 10 years for equipment.
- Up to 20 years for real estate acquisition and construction.
Loan payments are deferred for first 12 months for non-guaranteed loans though interest will accrue. Payments will be due and payable starting on the 13th month after the funding date. Loans guaranteed by the Disaster Relief Loan Guarantee Program are subject to interest-only payments for the first 12 months; principal and interest payments will begin on the 13th month after the funding date. No prepayment penalty. Uniform
Commercial Code Filing is required.
There are no origination fees for loans under $100,000. For loans above $100,000 origination fees are 1.5%. For loans guaranteed under the Disaster Relief Loan Guarantee Program originations fees are 2.5% of loan amount plus $250 for document processing fee.
A minimum of one full-time equivalent job must be retained or created per $75,000 of loan assistance.
The Small Business Stabilization Loan Program will start accepting applications Thursday and will remain open indefinitely. The program offers technical assistance from partners who offer complementary online webinars, one-on-one financial consultations, application assistance, and an evaluation of a business’ readiness to submit an LACDA loan application. Technical assistance is available in various languages, including English, Spanish, Chinese (Mandarin), and Korean. Since launching the webinar component of the related BizHelp Program on Jan. 12, 88 businesses have benefitted from these partnerships.
For more information on the requirements to apply for the Small Business Stabilization Loan Program, visit BizStabilization.lacda.org.
