Los Angeles Mayor Eric Garcetti has announced an $11 million economic relief package for small businesses impacted by the coronavirus.
“Small businesses are the backbone of our economy and we’ll do everything possible to help them survive this crisis,” Garcetti said.
Under 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, 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. To apply for a microloan or view the toolkit, visit lamayor.org/loan.
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