The City of Long Beach Microenterprise Revolving Loan Fund helps entrepreneurs start, sustain, and grow their businesses by providing access to affordable and flexible financing. This loan program offers financing to small, for-profit businesses for a variety of business expenses.
Terms and Conditions:
- Interest rate: Fixed rate at Wall Street Journal prime rate + 1.5 percent
- Fees: 2 percent of loan amount closing fee
- Term: 3 to 10 years
- Uses of funds: Loan proceeds may go toward business expenses, such as personnel, rent, supplies/materials, utilities, professional services, and more (proceeds cannot be spent on construction)
- Personal guarantee is required for all loans
- All loans must be approved by the City's Loan Committee
General Eligibility:
- Businesses must be a for-profit entity
- Must be located in Long Beach, California
- Start-ups are eligible and defined as less than one (1) year in operation (i.e. no filed tax returns)
- Start-ups must submit a complete business plan and financial projection
- All applicants must submit at minimum an executive summary & financial projection
- Start-ups are typically eligible for a maximum loan amount up to $25,000 to $35,000, exceptions will be made on a case-by-case basis
- Existing businesses may access loans up to $100,000
- Some existing businesses may be eligible for loans up to $250,000 subject to additional approval from City Council
Job Creation or Retention Requirement:
- One full time equivalent (FTE) job must be created or retained for each $35,000 in loan capital
- Full time equivalent is defined as 40 hours per week
Equity Requirements:
- Fixed asset loans for new and existing businesses will require a minimum of a 10 percent equity contribution by the borrower.
- Working capital loans will require a net working capital position equal to at least 20 percent of the loan request.
- Financing of start-up businesses will require a minimum equity investment by the borrower of 20%, but 30-50% is preferable.
Ineligible Activities Include:
- Loans involving construction or rehabilitation activities
- Loans which have the effect of relocating jobs from or to another jurisdiction
- Loans for the purpose of investing in interest-bearing accounts, certificates of deposits or other investments not related to job creation/retention.
- Loans for purposes that would adversely impact the environment, historically significant properties, and non-renewable natural resources
- Loans, which would create a conflict of interest for any officer or employee of the City of Long Beach (See EDA conflict of interest requirements listed in EDA RLF Standard Term D.16.)
- Interest subsidies
Loan terms are subject to change and all loans must go through underwriting and credit approval process.
Application Assistance
If you need assistance, with your business plan, financial projections, and/or completing your application, you can call the Long Beach Small Business Development Center (SBDC) to schedule an appointment with a Business Advisor. You may also schedule an appointment online. The SBDC offers free assistance to Long Beach businesses and has helped many of our clients apply for our loan programs. Their website and contact information are included below:
Website: https://longbeachsbdc.org/
Phone number: (562) 938-5100
Schedule appointment online: https://lasbdcnet.ecenterdirect.com/signup?centerid=63
Long Beach Microenterprise Revolving Loan Fund Application
The City of Long Beach Microenterprise Revolving Loan Fund helps entrepreneurs start, sustain, and grow their businesses by providing access to affordable and flexible financing. This loan program offers financing to small, for-profit businesses for a variety of business expenses.
Terms and Conditions:
- Interest rate: Fixed rate at Wall Street Journal prime rate + 1.5 percent
- Fees: 2 percent of loan amount closing fee
- Term: 3 to 10 years
- Uses of funds: Loan proceeds may go toward business expenses, such as personnel, rent, supplies/materials, utilities, professional services, and more (proceeds cannot be spent on construction)
- Personal guarantee is required for all loans
- All loans must be approved by the City's Loan Committee
General Eligibility:
- Businesses must be a for-profit entity
- Must be located in Long Beach, California
- Start-ups are eligible and defined as less than one (1) year in operation (i.e. no filed tax returns)
- Start-ups must submit a complete business plan and financial projection
- All applicants must submit at minimum an executive summary & financial projection
- Start-ups are typically eligible for a maximum loan amount up to $25,000 to $35,000, exceptions will be made on a case-by-case basis
- Existing businesses may access loans up to $100,000
- Some existing businesses may be eligible for loans up to $250,000 subject to additional approval from City Council
Job Creation or Retention Requirement:
- One full time equivalent (FTE) job must be created or retained for each $35,000 in loan capital
- Full time equivalent is defined as 40 hours per week
Equity Requirements:
- Fixed asset loans for new and existing businesses will require a minimum of a 10 percent equity contribution by the borrower.
- Working capital loans will require a net working capital position equal to at least 20 percent of the loan request.
- Financing of start-up businesses will require a minimum equity investment by the borrower of 20%, but 30-50% is preferable.
Ineligible Activities Include:
- Loans involving construction or rehabilitation activities
- Loans which have the effect of relocating jobs from or to another jurisdiction
- Loans for the purpose of investing in interest-bearing accounts, certificates of deposits or other investments not related to job creation/retention.
- Loans for purposes that would adversely impact the environment, historically significant properties, and non-renewable natural resources
- Loans, which would create a conflict of interest for any officer or employee of the City of Long Beach (See EDA conflict of interest requirements listed in EDA RLF Standard Term D.16.)
- Interest subsidies
Loan terms are subject to change and all loans must go through underwriting and credit approval process.
Application Assistance
If you need assistance, with your business plan, financial projections, and/or completing your application, you can call the Long Beach Small Business Development Center (SBDC) to schedule an appointment with a Business Advisor. You may also schedule an appointment online. The SBDC offers free assistance to Long Beach businesses and has helped many of our clients apply for our loan programs. Their website and contact information are included below:
Website: https://longbeachsbdc.org/
Phone number: (562) 938-5100
Schedule appointment online: https://lasbdcnet.ecenterdirect.com/signup?centerid=63