Truth matters. Community matters. Your support makes both possible. LAist is one of the few places where news remains independent and free from political and corporate influence. Stand up for truth and for LAist. Make your year-end tax-deductible gift now.
City Of LA Will Offer No-Interest Loans To Small Businesses Hit By Coronavirus
A mostly empty Grand Avenue as many people stay home due to Coronavirus fears. Chava Sanchez/ LAist
With the new coronavirus causing widespread economic disruption, the city of Los Angeles plans to offer a lifeboat to some small businesses in the form of low- to no-interest loans.
The city’s Economic and Workforce Development Department (EWDD) will offer $11 million in loans, ranging from $5,000 to $20,000 each, through the newly established Small Business Emergency Microloan Program.
Restaurants, gyms, retail shops and other small businesses who are seeing their customer base dry up can use these loans to pay for working capital expenses while they try to stay afloat.
The loans will be offered without interest for up to a year, or at 3-5% interest for up to five years.
To qualify, businesses must:
- Be located within the city of L.A.
- Have a good credit history
- Demonstrate that they have been affected by the coronavirus
- Show that their past profits are sufficient to pay back the debt
- Be aligned with the city’s broad goal of retaining jobs
EWDD General Manager Carolyn Hull said there’s no specific cap on how many employees a business can have in order to apply, though the program is designed to target businesses with around 20 employees or less.
“The loan amount is really to tide over those smaller companies,” Hull said. “We want to make sure those companies are able to rebound as quickly as possible when the current emergency has ceased.”
Sponsored message
The loans will help anywhere from 550 to 2,200 L.A. businesses. Many more are likely to be affected, but Hull said the city’s program is meant to complement other funding sources, such as disaster loans coming through the U.S. Small Business Administration.
MORE ON CORONAVIRUS:
• Your No-Panic Guide To Coronavirus In LA So Far
• Your No-Panic Guide: Sanitizer, Toilet Paper, Medicine — When Will Everything Be Back In Stock?
• Here's Your Quick, To The Point, Coronavirus Prep List
• Have A Question? We Will Answer It
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
