Mayor Eric Garcetti today announced an $11 million economic relief package for small businesses impacted by the novel coronavirus (COVID-19).
As part of the program, which was approved by the Los Angeles City Council, the Economic and Workforce Development Department will provide $11 million in no-fee microloans of $5,000 to $20,000 — which may be used to cover working capital. Since cash flow is critical at this unprecedented time, the program will offer relaxed underwriting with no credit score minimum, a generous allowance to meet debt service, and a 100% Loan to Value ratio. The interest rate can either be 0% for a term of six months to one year, or 3% to 5% for a term of up to five years.
The microloan program is being paired with a Small Business Resilience Toolkit, which is being distributed as a digital guidebook and includes vital information covering Federal, State, County, and City emergency policies and programs impacting small businesses. It also offers strategies for adjusting to the effects that COVID-19 is having on businesses — including ways to keep employees safe, maintain operations at maximum possible capacity, and prepare business continuity plans.
To apply for a microloan or view the toolkit, please visit LAMayor.org/Loan.