County Business Expansion Loan – Community Development Commission of the County of Los Angeles
Program – The County Business Expansion Loan Program (CBELP) provides financial assistance to small and medium sized businesses located in Los Angeles County.
Use of Funds – Loan proceeds may be used for property acquisition, equipment/machinery purchases and working capital.
Loan Amounts – Loan amounts range from $25,000 to $1,000,000.
Interest Rate – Interest rates vary and may change without notice.
The current rate is fixed, at six and one-half percent (6.5%).
Term Repayment – terms will generally be based on the useful life of the assets being financed and the borrower’s ability to repay.
The useful lives are generally 7 years for working capital, 10 years for equipment/machinery purchases and 20 years for real estate.
Loan Fee – The loan fee is 2 (%) points, plus any third party costs.
Collateral – Applicant must be willing to pledge collateral owned by the business or its principals to secure loan proceeds.
Eligibility – Loan assistance is available to existing and start-up, small and medium sized firms within Los Angeles.
Companies and principals must exhibit good credit and show evidence of repayment ability.
Applicants must demonstrate a financial need for a CBELP loan and confirm that the project offers a public benefit.
The CBELP may accompany, but not replace, private sector financing.