News Summary
Los Angeles has introduced the City Contract Financing Program to assist small businesses in managing the initial costs of fulfilling city contracts. The program, supported by $1 million from Banc of California, aims to alleviate the financial barriers that businesses face while waiting for city payments. Eligible businesses can apply for loans to cover expenses related to various professional services contracts. This initiative is expected to foster economic growth and increase participation among local small businesses, preparing the city for future significant events.
Los Angeles Launches City Contract Financing Program to Support Small Businesses with Initial Costs
Los Angeles has announced the launch of a new initiative called the City Contract Financing Program, aimed at providing essential financial assistance to small businesses seeking city contracts. The program, which started its application process today, is designed to help businesses cover initial costs associated with fulfilling city contracts, such as materials, equipment, and hiring, while they await payments from the city.
This program is a public-private partnership supported by $1 million funding from Banc of California. Its purpose is to tackle a substantial roadblock that small businesses often encounter: the lack of sufficient working capital to manage upfront expenses. With this new financing option, small businesses can more easily navigate the financial requirements associated with securing and completing municipal contracts.
Key Program Features
Eligible businesses can obtain loans through the city’s Community Development Financial Institution partners, which include Lendistry and the Pacific Asian Consortium for Employment (PACE). This funding can specifically be used for professional services contracts in various fields, including:
- Architecture
- Engineering
- Legal services
- Marketing
- Information Technology (IT)
- Project management
Eligibility Criteria
To qualify for participation in the City Contract Financing Program, businesses must meet several criteria:
- They must be located within the City or County of Los Angeles.
- They must hold a Business Tax Registration Certificate.
- They must be in the process of securing a professional service contract with the city.
There is no limit on the number of applicants for this initiative, encouraging widespread participation among small businesses in the area.
How to Apply
Interested businesses can access the program online through the website ProcureLA.com. This accessibility aims to streamline the application process and help businesses get the financial support they need in a timely manner.
Potential Economic Impact
Banc of California, which recently relocated its headquarters to Los Angeles, has emphasized the importance of the program in fostering economic growth in the region. It is considered a proactive approach to prepare the city for significant upcoming events, including the World Cup and the 2028 Olympics.
This initiative is indicative of a broader commitment to support small businesses, which serve as vital contributors to both the local economy and community stability. By easing financial barriers and facilitating access to city contracts, Los Angeles aims to create a more inclusive environment where small businesses can thrive and flourish.
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Additional Resources
- NBC Los Angeles: LA County Offering Loans to Small Businesses Affected by Eaton Fire
- Wikipedia: Small Business
- Daily News: Small Businesses in Downtown LA Impacted by Protests May Apply for SBA Loan
- CBS News: What Federal Relief Loans Are Open to LA County Businesses and Residents
- Calo News: Loan Program for Fire-Impacted Altadena Small Businesses
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
