Long Beach has received a $750,000 federal grant to expand its small-business loan programs, providing additional financing opportunities for entrepreneurs and businesses unable to secure traditional bank loans, city officials announced Monday.
The grant from the U.S. Economic Development Administration will support the city’s Revolving Loan Fund programs, which offer low-interest loans to help businesses launch, expand operations, purchase equipment and retain or create jobs, according to the city.
“This investment is a powerful opportunity to put more capital directly into the hands of Long Beach entrepreneurs and small businesses,” Mayor Rex Richardson said. “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.”
The city’s small-business loan programs include the Microenterprise Loan Program and Grow Long Beach Fund, which provide financing to businesses that have difficulty obtaining loans through traditional lenders.
Since 2001, Long Beach has issued more than $7.9 million in loans through the programs, resulting in the creation or retention of 650 jobs, according to city officials.
The city’s current loan portfolio includes 106 active loans totaling $3.8 million.
The Long Beach City Council approved the grant award on an 8-0 vote June 16. The grant will expand the city’s lending capacity by reimbursing it for eligible small-business loans issued through the programs.
Loan amounts range from $10,000 for microloans to several hundred thousand dollars for larger business financing needs, depending on eligibility.
The loans carry fixed interest rates set in accordance with federal requirements, at the lower of 4% or 75% of The Wall Street Journal prime rate, with a maximum rate of prime plus 1%, city officials said.,
Loan terms typically range from five to 10 years, with a maximum of 25 years. The money can be used for working capital, equipment purchases, business expenses and improvements to leased commercial property.
The federal grant funds must be expended by March 31, 2029.
“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 Bo Martinez, director of the city’s Department of Economic Development & Opportunity. “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. With the support of this federal grant, we can expand that access to capital and help more Long Beach businesses build, grow and thrive.”
Businesses interested in applying for financing can contact the city’s BizCare Hotline at 562-570-4249 or BizCare@longbeach.gov.
Additional information about the programs is available at longbeach.gov/bizdev.