Small Business Loans & SBA Loans in Los Angeles
Wondering what financing options your small business can qualify for in the City of Angels? Learn what’s available and which ones will best meet your business’ needs.
Types of business loans in Los Angeles.
Not all business loans in Los Angeles are created equal. That’s why it’s a good idea to shop around and explore all your options. As you do so, you’re sure to come across these popular financing solutions.
SBA loans
SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.
Line of credit
Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.
Term loan
Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.
Equipment finance
With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.
Accounts receivable financing
Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.
Los Angeles business loan options.
Several local organizations provide small business funding resources in Los Angeles.
LISC LA, a nonprofit that supports community development offers several small business loans. These include permanent working capital loans, acquisition and leasehold improvement loans, and commercial real estate loans.
EWDD, the Economic and Workforce Development Department has also designed a business loan program for small businesses who create jobs in Los Angeles. Its loans can be used for inventory, equipment, working capital, and leaseholder improvements.
In addition, the Los Angeles Federal Credit Union provides business loans ranging from $20,000 to $5 million with flexible repayment schedules.
The Los Angeles County Development Authority (LACDA) has made over 270 business loans to promote business growth and job creation/retention.
The California Small Business Loan Guarantee Program (SBLGP), funded through IBank’s Small Business Finance Center, provides loans to small businesses both in Los Angeles and the rest of California to help create and retain jobs in low-to-moderate income communities.
The Jewish Free Loan Association (JFLA) offers interest-free small business loans up to $25,000 to highly qualified small businesses in Los Angeles and Ventura counties.
Four simple steps to funding.
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Submit your application.
We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.
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Find the funding option with the terms that best fit your small business goals.
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Once you accept, funding can hit your bank account in as little as 24 hours.
FAQs
TheLos Angeles Public Library is an invaluable resource for small business owners in Los Angeles. Not only does it offer a variety of research materials for entrepreneurs, but it also holds a small business workshop every month. If you’re looking for free, one-on-one mentoring, you may want to get involved with Los Angeles SBDC. In addition to mentoring, you can participate in workshops and take advantage of a wealth of online resources. There’s also the Latin Business Association which offers business planning, networking, and legal support for Latino business owners in Los Angeles.
The PACE Small Business Grant Program is a grant fund for small businesses who operate within the unincorporated areas of Los Angeles County. If you meet certain criteria, you can lock in a grant of $5,000 or $10,000 to assist with payroll, rent, working capital, and inventory costs.
The SoGal Black Founder Startup Grantis another grant opportunity for black women or black nonbinary entreprenurs with scalable, high-impact busines ideas. For an updated list of other grants in Los Angeles and California, check out the Incentives, Grants, and Financing page on the official state of California website.
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