A $1 million program funded by the Banc of California is now available to help small business owners secure competitive loans to cover upfront costs of fulfilling city contracts, the Mayor’s Office announced today.
Mayor Karen Bass created the Contract Financing Program to assist small businesses in obtaining and managing city contracts. The loans are intended to bridge gaps in payment cycles and cover expenses such as materials, equipment and staffing.
“Opening Los Angeles for business means making City Hall an advocate for business,” Bass said in a statement. “I encourage small businesses to apply for the contract financing program with support and funding provided by Banc of California.”
“With this funding they can be more competitive to win and keep city contracts. With major events on the horizon, we want to make sure that small and local businesses have a new pathway with the contract financing program to compete for city contracts now and in the future,” Bass added.
To qualify, businesses must be located within the city or county of Los Angeles and meet the following criteria:
— Be in the process of being awarded a Professional Services Contract with the city;
— Hold a valid Business Tax Registration Certificate; and
— Compete for professional services contracts in areas such as architecture, engineering, consulting, legal services, accounting, marketing, IT, human resources, training and project management.
Banc of California relocated its headquarters to Los Angeles in 2023, during Bass’ first year in office. The bank is the largest independent financial institution in the city and the third largest headquartered in California.
“The Los Angeles region is a major contributor to the California economy and the national economy. We need public-private solutions like this to help accelerate rebuilding and to ensure the city is ready to take center stage at the upcoming World Cup and the 2028 Olympics,” Jared Wolff, chairman and CEO of Banc of California.
“When Los Angeles businesses of all sizes can compete and thrive, there is a broader positive effect on the economy,” Wolff added.
The City’s Contract Financing Program establishes financing partnerships which allow an unlimited number of eligible businesses to apply for the program and compete for financing. Loans to qualified borrowers will be funded by the city’s Community Development Financial Institution partners: Lendistry and the Pacific Asian Consortium for Employment. More information is available at ProcureLA.com.