Long Beach just got a fresh infusion of federal cash aimed squarely at helping small business owners get the capital they need to grow. The U.S. Economic Development Administration awarded the city a $750,000 grant to expand its Revolving Loan Fund programs — the Microenterprise Loan Program and the Grow Long Beach Fund — which offer below-market financing to entrepreneurs who often get turned away by traditional banks.
The City Council approved accepting the award earlier this year, and the funds must be put to use by March 31, 2029. In practice, the grant works by reimbursing the city for loans it issues, which lets it lend out more money to more businesses without straining its existing budget.
For business owners, the appeal is in the terms: loans range from as little as $10,000 for microenterprises up to several hundred thousand dollars for larger needs, with repayment stretched over five to ten years (up to 25 in some cases) and fixed interest rates capped at the lower of 4% or 75% of the prime rate. Money can go toward working capital, equipment purchases, everyday business expenses, or improvements to a leased commercial space — the kind of costs that often stall a growing business when a conventional lender says no.
Mayor Rex Richardson framed the grant as a direct investment in the people already building Long Beach’s economy, calling it a powerful opportunity to put more capital directly into entrepreneurs’ hands. Bo Martinez, who directs the city’s Department of Economic Development and Opportunity, said the goal is bridging the gap between small businesses and the financing that’s traditionally been hard for them to reach.
The track record backs up the pitch: since 2001, these loan programs have issued more than $7.9 million and helped create or retain 650 jobs across the city. Right now there are 106 active loans worth a combined $3.8 million on the books, and this new federal money should let that number keep climbing.
If you run a Long Beach business and traditional financing hasn’t worked out, the city’s BizCare team can walk you through eligibility at 562-570-4249 or BizCare@longbeach.gov. It’s a good reminder that even in a tight lending environment, local and federal dollars are actively looking for small businesses worth backing — in Long Beach and across the greater LA area.
Source: MyNewsLA
Are you a local business owner? Add your business listing on Los Angeles Business Web today.