GROW AMERICA IN PARTNERSHIP WITH THE LACDA

The Altadena Disaster Relief Small Business Loan Program was created in response to Federal Declaration on January 7, 2025. These loans aim to provide working capital to businesses that create or retain jobs and offer goods or services to local residents. Applications will be processed on a first-come, first-served basis.

• Loan Amount: Up to $75,000
• Eligible Uses: Working Capital
• Dates to Remember: Applications will be accepted between
  Tuesday, May 6, 2025, 12:00 p.m., and Tuesday, June 3, 2025, 12:00 p.m.

Loan Amount: Maximum of $75,000

Interest Rate: 0% for the first 60 calendar months; 3% fixed interest effective on 61st calendar month through 180th month (loan maturity).

Loan Term: 15 years

Payment Deferral: Loan payments and interest accrual are deferred for first 60 calendar months for loans. Principal and interest payments will be due and payable starting on the 61st calendar month from funding date over a 10-year amortization (180th month).

Loan Funds Disbursement: Loan funds will be disbursed directly to borrower.

Job Creation: A minimum of one full-time equivalent job must be retained or created per $75,000 of loan assistance.

Prepayment Penalty: None

Eligible Activities:

Funds are to be used for working capital such as:

•  Employee payroll;
•  Business rent;
•  Purchase of inventory;
•  Day-to-day operational needs;
•  Payment of outstanding business expenses.

Ineligible Activities:

• Acquisition of an equity position in a private business;
•  Interest payments on an existing loan;
•  Equity contributions under Federal Agency loan programs;
•  Acquisition interest in a business either through the purchase of stock or through the acquisition of assets;
•  Investment in interest-bearing accounts, certificates of deposits, or any investments unrelated to the objectives of the loan program;
•  Relocation of jobs from or to another labor area;
•  Real estate investment for personal gain not related to business expansion or need;
•  Collateral to obtain credit or other financing;
•  Support for County operations or administration;
•  Activities that would violate EDA Property regulations outlined in 13 CFR part 314;
•  Gambling activity, performances or products of a prurient sexual nature, or any illegal activity, including the cultivation, distribution, or          sale of marijuana that is illegal under Federal law;
•  Lines of credit; or
•  Household or consumer purposes.

Small Business Requirements:

Operation Status: Business must be open to the public at the time of application submittal.

Location: Business must occupy a physical storefront location within an unincorporated area of zip codes 91001 and 91104.

Eligibility Map:  Unincorporated Altadena Mapping Tool

Minimum time in Operation: Applicant must have been in operation for a minimum of six months at time of application. Applicant shall provide proof of operation through documentation such as business license, lease, or other documentation as deemed appropriate by the Los Angeles County Development Authority (LACDA).

Application Limit: Only one application per legal entity will be accepted. The LACDA reserves the right to limit the number of applications submitted per principal and/or business.

Uniform Commercial Code (UCC-1) Filing: Required for all loans.

Credit Reports: Hard pull credit report required. Applicant shall provide underwriter direct written release to obtain personal and business credit report for borrower(s).

Credit Score: Must show good management of credit. Minimum FICO score of 620, but may use lower score for those with extenuating circumstances.

Financial Stability: Applicant must provide 2023 Business Tax Returns, 2024 Financial Statements (balance sheet and income statements), Interim financial statements for Quarter 1 – 2025, and financial feasibility of the applicant and principal owner(s) repaying the loan.

Good Standing: Business must have an “active” status with the Secretary of State. Please verify the business active status at: https://bizfileonline.sos.ca.gov/search/business

Disaster Impact Statement:  

Applicants must:  

•  Show that business was impacted by the disaster through a hardship statement.
•  Provide explanation of what has been done to address the impacts of the disaster on the business (i.e., pivot, online sales, etc.).
•  Describe how the loan funds address the disaster impact.

Eligible Businesses:

The following business types may apply for the Disaster Relief Small Business Loan Program:

•  Restaurants, coffee shops, bakeries, cafés, gastropubs, etc.;
•  Salons, barbers, and other grooming businesses;
•  Gyms, day spas, and fitness studios;
•  Retail and commercial stores (consumer goods, electronics, appliances, health, sporting goods, furniture, clothing and shoes, kitchen equipment, books, entertainment, music, and audio/visual equipment, etc.); and
•  Others not on the ineligible list.

Ineligible Businesses:

The following businesses are NOT eligible for the Disaster Relief Small Business Loan Program:

•  Financial businesses primarily engaged in the business of lending (banks, finance companies, pawn shops, factors, and cashing businesses);
•  Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under § 120.111);
•  Life insurance companies;
•  Businesses located in a foreign country or with foreign entities with a business interest greater than 20%;
•  Pyramid sale distribution plans;
•  Businesses deriving more than one-third of gross annual revenue from legal gambling activities;
•  Businesses engaged in any illegal activity;
•  Private clubs and businesses which limit the number of memberships for reasons other than capacity;
•  Government-owned entities (except for businesses owned or controlled by a Native American tribe);
•  Businesses principally engaged in teaching, instructing, counseling, indoctrinating religion or religious beliefs, whether in a religious or secular setting;
•  Loan packagers earning more than one third of their gross annual revenue from packaging Small Business Administration loans;
•  Businesses with an associate who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude;
•  Businesses in which the lender, or any of its associates owns an equity interest;
•  Businesses which:

1. Present live performances of a prurient sexual nature; or
2. Derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature;

•  Nightclubs
•  Check cashing, liquor stores, smoke/cannabis shops, and firearms retailers;
•  Any business (or its principals, associates or management) has been debarred from doing business with the County, State, or Federal government, or is on any Office of Foreign Assets Control or similar list;
•  Real Estate Companies;
•  Home based or online businesses; and
•  Street vendors and food trucks.

Website: https://altadenabizrelief.lacda.org/ 

NOTE: Only one application per legal entity will be accepted.  The LACDA reserves the right to limit the number of applications submitted per principal and/or business.

QUESTIONS? - Please contact the LACDA at altadenabizrelief@lacda.org or call 626-586-1760.

ONLINE APPLICATION ISSUES?  - Please contact the Program Administrator at altadenabizrelief.info@growamerica.org.