Gap Financing Loan Program

The City of Los Angeles Gap Financing Program aims to support equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention. Forgivable grants and loans are available for qualified projects ranging from $500,000 to $1,500,000.

The Gap Financing Program will fund economic development projects involving the acquisition, new construction, and substantial rehabilitation of commercial, industrial, and the commercial component of mixed-use developments. Funded projects will focus on developing:

Promoting Economic Growth of New Business and Industry

Job Creation and Retention

Diversification of the Los Angeles Economy

The Economic and Workforce Development Department seeks to fund qualified and shovel-ready projects to provide economic development and community benefits while ensuring the project is eligible at the program and underwriting levels. Potential projects must start construction within 18 months of the forgivable grant agreement/loan agreement execution to ensure gap financing investment dollars are deployed in a timely manner for maximum community benefit.

Is Your Project a Candidate?

Do any of these questions apply to your proposed project?

Is the proposed project within the City of Los Angeles boundaries?
Is the proposed project commercial, industrial, or mixed-use?
Has the proposed project received all entitlements and permits?
Will the proposed project start construction within 18 months of loan approval?
Has the proposed project received all funding commitments?
Does the proposed project have a confirmed funding gap of no more than $1.5 million?
Will the funds be used for construction, rehabilitation, equipment, relocation, and indirect or soft costs associated with these activities?
Will the proposed project create/retain jobs or provide needed goods/services to low- and moderate-income residents?

If you answer yes to most of these questions, your project might be a good candidate for gap financing. For additional information, please fill out EWDD's Loan Program Intake Form so that we can better assist you!

Intake Form

What is Gap Financing?

A funding gap is the difference between the cost of a project and the committed funding sources. Also referred to as bridge or interim financing, gap financing is a short-term loan to meet an immediate financial obligation until a longer-term financial loan can be secured. EWDD offers this type of financing for commercial, industrial, and the commercial or industrial portion of mixed-use projects.

Types of eligible recipients include partnerships, corporations, sole proprietorships, public agencies, and non-profits with a demonstrable record of operations.

Evaluation Criteria

The goal of the Gap Financing Program is to support the equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention.

Potential projects must be shovel-ready, meet CDBG Program Underwriting requirements, and must be located within the City of Los Angeles. Use the LA City Neighborhood Info Tool to determine the location of your business or development project.

Eligibility

Eligible Activities

Land Acquisition
Off-site or on-site improvements
Building construction/renovation/expansion
Clearance and demolition
Parking facilities
Purchase or long-term lease of equipment
Relocation
Interior and/or exterior rehabilitation, restoration or alteration of commercial properties—leasehold, seismic, or other improvements
Purchase of commercial property for expansion of an on-going business
Indirect or soft costs associated with the above activities

Funding Requirements

Per Community Development Block Grants (CDBG), all projects must meet at least one national objective:

Benefit to low-and moderate income (LMI) persons
Aid in the prevention of slums or blight
Meet an urgent need

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