The Long Beach Department of Economic Development & Opportunity (EDO) announced a $750,000 grant for the City’s small business loan programs.
The grant, awarded by the U.S. Economic Development Administration (EDA), will go toward the City’s Revolving Loan Fund, which provides local entrepreneurs and small business owners resources to start and grow their businesses.
“This investment is a powerful opportunity to put more capital directly into the hands of Long Beach entrepreneurs and small businesses,” said Mayor Rex Richardson in a public statement. “By strengthening our small business loan programs, we are helping local businesses invest in their operations, create jobs, and build a stronger foundation for long-term growth. When our small businesses have the means to grow, our entire city benefits and thrives.”
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The City’s small business loan programs, such as the Microenterprise Loan Program and Grow Long Beach Fund, provide low-interest capital to small businesses that are unable to secure traditional bank financing. In addition, these programs offer gap financing options —short-term loans for immediate financial obligations — that emphasize job creation, job retention, economic diversification and long-term economic stability citywide.
Long Beach has issued more than $7.9 million in loans, resulting in 650 jobs created or retained since 2001. According to the City, its loan portfolio currently includes 106 active loans totaling $3.8 million.
On June 16, the Long Beach City Council unanimously approved this expansion of local small business funding. Through the grant, the City will be reimbursed for eligible small business loans issued via its loan programs.
Loan amounts will range from $10,000 microloans to loans of several hundred thousand dollars, depending on the needs and eligibility of the applying business.
“By helping bridge the gap between businesses and traditional financing, the City is investing in the entrepreneurs who are at the heart of our local economy,” said EDO Director Bo Martinez in a public statement. “These loan programs provide businesses with access to capital they need to strengthen their operations, pursue new opportunities and take their businesses to the next level”
In accordance with federal requirements, loans will carry fixed interest rates at 4% or 75% of the Wall Street Journal Prime Rate, with a maximum rate of prime plus 1%. Loan terms typically vary from five to 10 years, with a maximum of 25 years, and can be used for working capital, equipment purchases, business expenses or leasehold improvements.
Funds must be expended by Mar. 31, 2029. Those interested in applying for a small business loan can contact EDO’s BizCare Hotline at 562-570-4BIZ (4249) or email BizCare@longbeach.gov.
For more information about the City’s small business loan programs and other resources for small businesses, visit longbeach.gov/bizdev.
