Getting Main Street Back on Its Feet
A resource guide to assist local small businesses impacted by COVID-19
Introduction
Small businesses are the lifeblood of our communities, but much of Main Street America is financially imperiled because of the coronavirus pandemic. To keep our locally-owned businesses open, the City of Los Angeles is providing direct assistance and also helping business owners navigate the federal loan program approved by Congress.
L.A. Controller Ron Galperin presents this interactive tool to help businesses understand what resources and services are available to help them make it through COVID-19 crisis. Scroll through this story map to discover what assistance is being offered to small businesses at the federal, state and local levels during these difficult times.
Federal Aid
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides hundreds of billions in Small Business Administration (SBA) loans for emergency assistance to businesses affected by the pandemic. In addition to traditional SBA funding programs, the CARES Act established several new temporary programs for small businesses. The following are available as of Oct. 29, 2020.
Economic Injury Disaster Loans
Small business owners, including nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an EIDL. The program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19.
SBA Express Bridge Loans and Debt Relief
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. In addition, the SBA is currently paying six months of principal, interest and any associated fees that borrowers owe for certain microloans.
State of California
CA Infrastructure and Economic Development Bank (IBank) Finance Programs and Tax Relief
The State of California created the California Rebuilding Fund to to bring together funding from private, philanthropic and public sector sources – including an anchor commitment from IBank – to address the needs of small businesses as they re-open and recover from the COVID-19 health and economic crisis.
In addition, $50 million has been allocated to the Small Business Finance Center at IBank to mitigate barriers to capital for those small businesses (1-750 employees) that may not qualify for federal funds, including businesses in low-wealth and immigrant communities. The $50 million allocation is being used to recapitalize the IBank Small Business Loan Guarantee Program . And the Disaster Relief Loan Guarantee Program provides guarantees for loans of up to $50,000 for small business borrowers in declared disaster areas.
California Capital Access Program (CalCAP)
CalCAP is a loan loss reserve program that may provide up to 100% coverage on losses as a result of certain loan defaults. Individual borrowers (1-500 employees) are limited to a maximum of $2.5 million enrolled over a 3-year period. Contact a Participating Lender to enroll.
Cal-OSBA – Small Business Assistance and Resources
California’s network of small business support centers help businesses figure out which loans are best for them, develop resiliency strategies and find other resources. Click here to learn more.
If you need to talk to a specialist in the Governor’s Office of Business and Economic Development or Office of the Small Business Advocate directly, please contact the team .
Click here for a list of free or discounted technology tools for small businesses in California.
California Entrepreneurship Task Force
The California Entrepreneurship Task Force has launched a series of Rapid Response Virtual Sessions to engage with fellow small business owners and entrepreneurs across the state. More details here .
Los Angeles
L.A. CARES Corps
L.A. CARES Corps is a partnership between the City and County of Los Angeles to provide small businesses with the help they need to apply for federal CARES Act assistance.
Small business owners can find a clear explanation of the emergency loan programs and access applications on the L.A. CARES Corps website . There is also a dedicated call center at (833) 238-4450, where SBA trained counselors offer live assistance in completing applications.
L.A. COVID-19 Relief Fund
The City and County of Los Angeles, in partnership with institutional and corporate philanthropy, have come together to create the LA Regional COVID-19 Recovery Fund. The regional fund offers loan and grant resources to area micro-entrepreneurs, small businesses and non-profits. Click here for more information and to apply.
Controller's Office
COVID-19 Resource Hub
L.A. Controller Galperin's COVID-19 Resource Hub contains 16 categories of federal, state and local resources to help residents and businesses, including assistance for employees and job seekers, artists and freelancers, small businesses and nonprofits; and seniors, renters, homeowners and immigrants.
There is also updated information on food access, financial support, testing and medical treatment, mental health, education, utilities and internet, City services, legal assistance and arts and culture.
Small Business Microloan Tracker
Controller Galperin's Small Business Emergency Microloan Program Tracker displays the microloans funded by the City of Los Angeles to help small businesses get the assistance they need during the pandemic.
The tracker includes a map with the name, location and how much money each microloan recipient received, and also groups recipients by industry.
Equity for Small Businesses
One important area where the City must improve is creating a more equitable environment for small businesses to contract with the City.
Controller Galperin’s recent report, “Seizing the Opportunity to Advance City Contracting Equity,” recommended taking steps to help small businesses and businesses owned by women, people of color and others do business with Los Angeles.
Additional Resources
