The Small Business Stabilization Loan Program will lend amounts between $50,000 and $3 million for working capital, equipment purchases, inventory or refinancing of existing loans.
The program launched Thursday and will remain open indefinitely. The size of the program’s fund isn’t clear.
The loans will come with a fixed Wall Street Journal prime interest rate, which currently sits at 3.25 percent.
Businesses approved for a working capital loan must pay it back in five to seven years. Equipment loans have a term of up to 10 years, while real estate acquisition and construction loans max out at 20 years.
To be eligible, businesses must have a physical location within the county and must have been in operation for at least two years. Not eligible are banks and other business lenders, life insurance companies, religious businesses, liquor stores, smoke shops, nightclubs and casinos.
Borrowers need to submit a statement detailing the impact of the coronavirus on their business and explaining what they’ve already done to mitigate that impact.
L.A. County Development Authority, based in Alhambra, administers affordable housing and community economic development initiatives. Until 2019, it was known as the Community Development Commission.