Finances larger real estate projects in order to create economic and physical revitalization in the City of Los Angeles. Program targets are primarily in the Federal Empowerment Zone, Federal Enterprise Community, State Enterprise Zones, and other communities serving low and moderate income residents of the City of Los Angeles; loan amount range from $500,000 to $5,000,000.

City of Los Angeles, Community Development Department

City of Los Angeles
Community Development Department
1200 W. 7th Street, 6th Floor
Los Angeles, CA 90017
Contact: Ernest Tidwell
Phone: (213) 744-9361
http://www.lacity.org/CDD/bus_finops1.html

Benefits low and moderate-income persons through job creation and retention, provides goods and services and eliminates slum and blight. One job must be created for every $35,000 in loan proceeds. A minimum 51% of the jobs must be available for low and moderate-income persons.

Gap financing for real estate acquisition, construction or renovation, costs of fixtures and equipment, and soft costs as loan fees, architectural costs, relocation, and legal fees. Funds also finance assembled land for project redevelopment, relocating a business to the city, and developing an incubator or industrial park.

Rates range from a minimum of 1.0% to a maximum of 2.5% over the city’s costs of funds. The loan-processing fee is 1.25%. The loan term allows a maximum not to exceed 20 years and is based on return on investment, cash flow, collateral, equity, and the use of funds.

Industrial Development Bonds (IDBs) are securities issued by certain governmental agencies or authorities, state and local governments, or a development corporation.

City of Los Angeles Industrial Development Authority

Industrial and Commercial Development Authority
City of Los Angeles Community Development Department
1200 W. 7th Street, Floor 6
Los Angeles, CA 90017
Contact: May Smith
(213) 744-9360
http://www.lacity.org/CDD/bus_finop.html

City of Los Angeles

Any manufacturing firm with a project in the City of Los Angeles.
Projects must result in public benefits, such as job creation for low and moderate income residents. State law requires that for tax-exempt IDBs one job must be created for every $75,000 in bond proceeds. Businesses receiving financing must demonstrate good credit and evidence of sufficient income to service the debt. In many instances the collateral is the real estate being financed or equipment being purchased.

The proceeds are used to finance the construction of industrial plants or purchase of equipment, and expansion or relocation of qualifying manufacturing facilities. The project financed must be industrial.

Terms for tax-exempt IDBs are from ten to twenty years, amortized over 30 years, and range from $2 million up to a maximum of $10 million. Tax-exempt

IDBs interest rates have historically been at least 2 percentage points lower than conventional financing.

Ongoing, subject to state debt allocations for private activity tax-exempt debt

Allows a business to not only obtain a loan it could not otherwise obtain, but to establish a favorable credit history with a lender. With that, the business may obtain further loans on its own, without the assistance of the program.

State of California Financial Development Corporations

San Fernando Valley Economic Alliance
Paola Macciavello
12502 Van Nuys Blvd., Suite 119
Pacoima, CA 91331
(818) 834-9860
(818) 897-8007 (fax)

Pacific Coast Regional Financial Development Corporation
3255 Wilshire Blvd., Suite 1501
Los Angeles, CA 90010
(213) 739-2999
(213) 739-0639 (fax)
www.pcrcorp.org

Hancock Urban Development Corporation
3600 Wilshire Blvd., Suite 926
Los Angeles, CA 90010
(213) 382-4300
(213) 382-4732 (fax)
hancock@hudc.org
http://www.ibank.ca.gov

State of California

Any small business as defined by the Federal Small Business Administration (SBA), i.e. businesses that employ one hundred people or less.

Guarantees can cover up to 90% of the loan amount, with the guaranteed portion of the loan not exceeding $350,000. The guaranteed percentage varies and subject to negotiation between the FDC and the lender. The
term of the loan guarantee may extend up to seven years. Interest rates are negotiated between the borrower and the lender. Processing time takes three to five weeks, depending on how fast the applicant provides the necessary information and documentation, and on the lender's responsiveness. Collateral is generally required with each transaction is tailored to meet the borrower's financial situation.

The FDC may charge a guarantee fee of up to 2% of the amount guaranteed, plus a documentation fee of $250.

Interest rates are negotiated between the borrower and the lender.

Ongoing

Encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks' conventional underwriting standards.

California Pollution Control Financing Authority (CPCFA)

California Pollution Control Financing Authority
Attention: SBAF Program Manager
915 Capitol Mall, Room 457
Sacramento, CA 95814
(916) 654-5610
http://www.treasurer.ca.gov/cpcfa

State of California

Eligible Lenders: Any federal or state-chartered bank, savings association or credit union is eligible to participate in CalCAP. Other banks, such as community development banks, may also be eligible.

Eligible Small Businesses: The borrower's business must be in one of the industries listed in the qualified Standard Industry Classification codes list. The borrower's primary business and 50% of its employees or business income, sales or payroll must be in California. The business activity resulting from the bank's loan must be created and retained in California.
The small business must be classified as a small business under U.S. Small Business Administration guidelines (Title 13 of the Code of Federal Regulations) or have fewer than 500 employees.

The maximum loan amount is $2.5 million. The maximum premium CPCFA will pay is $100,000 (per loan). Loans can be short- or long-term, have fixed or variable rates, be secured or unsecured, and bear any type of amortization schedule.

Lenders set all the terms and conditions of the loans and decide which loans to enroll into CalCAP. Lenders determine the premium levels to be paid by the borrower and lender.

Terms are set by lender, with market interest rates. Loan fees are 2% to 3.5%.

Ongoing

California Economic Development Lending Initiative

The Development Fund
Southern California Office
George Williamson, president
4060 South Figueroa
Los Angeles, CA 90037
Tel: 323/232.4520
Fax: 323/235.4053
Email: cedli@ix.netcom.com
http://www.caratnet.org/CEDLI.htm

State of California

All small businesses are eligible for CEDLI loans. The business must be in operation for at least 12 months, have a positive net worth and sales of less than $10 million annually. Providing access to women and minority owned businesses is a high priority, as well as businesses that are located in low-income communities under served rural areas.

Equipment purchase, permanent working capital, business acquisition, lease hold improvements, financing accounts receivable and inventory. Loans for speculative purposes will not be considered eligible.

$70 million in total pool funds will be available (to be drawn down over 5years); a co-lending program will match funds from other lenders.

Pricing in accordance with risk, approximately prime plus 2-5% p.a. minimum rate 7.25% p.a.

Ongoing

The Expansion Loan Program is designed to provide capital for businesses that are expanding.

A consortium of financial institutions

Community Financial Resource Center (CFRC)
Kevin Kim, Loan Fund Manager
4060 S. Figueroa Street
Los Angeles, CA 90037
Phone: (323) 233-1900
Fax: (323) 235-1686
http://www.cfrc.net

LA County

Profitable small businesses under the same management for at least two years that want to expand.

Funds to be used for fixed asset acquisition, leasehold improvements, permanent working capital and inventory. Amounts of loans vary from $30,000 to $250,000.

Varies

The interest rate will not exceed 10%. Terms are for five years.

Ongoing

This is a direct loan program that subsidizes loans for struggling businesses that have been in operation for a minimum of two years.

City of Los Angeles

Community Financial Resource Center (CFRC)
Kevin Kim, Loan Fun Manager
4060 S. Figueroa St.
Los Angeles, CA 90037
323-233-1900
323-235-1686(fax)
http://www.cfrc.net

Any legitimate micro or startup business that has been in operation for a minimum of one to two years. All loans require some form of collateral: Real estate, auto, stocks, bonds, etc.

Permanent working capital, seasonal working capital, fixed asset acquisition, leasehold improvements, real estate equity loans, business startup expenses, and inventory.

All applicants will require a processing fee

Loan amounts range from $5,000 - $30,000. Repayment terms are from 12 to 60 months with fixed rates

Ongoing

Encourage banks to make small business loans that are not traditionally bankable. Special emphasis is placed on the creation and retention of jobs.

State of California

San Fernando Valley Economic Development Center
12502 Van Nuys Blvd, Suite 119
Pacoima, CA 91331
818-834-9860
818-897-8007(fax)
http://www.vedc.org/

Pacific Coast Regional Small Business Development corp.
3255 Wilshire Blvd, Suite 1501
Los Angeles, CA 90010
213-739-2999
213-739-0639
http://www.pcrcorp.org/
www.commerce.ca.gov

State of California

Any small business

Accounts receivable, equipment purchases, inventory, leasehold improvements, contract financing, business expansion, lines of credit.

Loan guarantees for up to 90% of the loan amount, for loans up to $350,000. Loans are made by private lenders.

Interest rates negotiated with lending institution. Terms related to assets being financed.

Ongoing