Small Business Loan Program

EWDD designed the Small Business Loan Program in order to provide financing to viable small businesses that private lenders cannot accommodate. Whether your business is a start-up or an existing business that would like to expand, loan funds can be used for reasonable and eligible business operation costs, including, but not limited to, inventory, equipment, working capital and leaseholder improvements.

The ultimate goal of the Small Business Loan Program is job creation and the borrower is required to create jobs in the City of Los Angeles. If you are interested in applying for one of EWDD's loan programs, please fill out EWDD's Loan Program Intake Form so that we can better assist you!

Intake Form

Program Requirements

Eligibility Criteria Important Documentation Loan Terms

Eligibility Criteria

Annual revenue must not exceed $10 million and have no more than 500 employees, depending on business NAICS code

Must create one permanent full-time equivalent job for every $35,000 in financial assistance received from the City

Out of the total jobs created, 51% must be fulfilled or made available to low and moderate-income persons

Business must be located in the City of Los Angeles*. Please use the City of Los Angeles, Department of City Planning Online Zoning Tool to determine if your commercial location is located within LA City's boundaries (*home-based businesses are not eligible)

Applicant that has recently been approved for similar financing may not apply

Applicant, in many cases, will need to show evidence/justification for not being able to obtain similar financing elsewhere

Important Documentation

Business Plan or an Executive Summary
Breakdown of Sources and Uses of Funds (budget)
Projections for 3-5 years, if available
Business Tax Registration Certificate, if available
Personal Financial Statement
Personal Income Tax Returns for 2 years
Business Tax Returns for 1-2 years, if applicable or available
Interim/Fiscal Year End Profit & Loss and Balance Sheet, if applicable or available
Resumes, if available

Additional documentation, if applicable or available:

Commercial Lease Agreement
Commercial Liability Insurance
Workers Comp Insurance
Other documentation as necessary or required

Loan Terms

Business Revenue Limits:: Up to $10,000,000.00*
*Depending on business NAICS Code
Maximum Number of Employees on Payroll:: 500 Employees*
*Depending on business NAICS Code
Job Creation/Retention or Area Benefit:: Required
Loan Fee:: 2%*
*Additional fees may apply
Application Fee:: $250, non-refundable

Loan Limits:: $50,000 to $700,000*
*EWDD may consider a smaller or a larger loan amount if it deems appropriate
Term/Amortization:: 3-20 Years*
*Depending on the use of funds/useful life of the asset
Interest Rate:: 4% - 10%*
*Depending on the WSJ Prime rate and risk
Program Parameters:: EWDD operates as a direct lender utilizing funds from the EDA. This program is available to businesses that recently have not been able to qualify for the conventional bank financing. On a best efforts basis, each loan is supported with collateral which may include business assets such as cash, accounts receivable, inventory, equipment, intellectual property and/or real property.

Personal Guaranty from owner(s) is required. Minimum Owner's Capital Injection: 10%

Contact

If you are interested in applying for one of EWDD's loan programs, please fill out EWDD's Loan Program Intake Form. There are also multiple BusinessSource Centers located throughout the City that can provide more information and help you with applications. Find a center close to you.

BusinessSource Center Locations

Central & East LA South & West LA Harbor San Fernando Valley