Los Angeles LDC   
A Community Development Financial Institution  
Micro Credit Access
Southern California Business Development Fund
504 ACE
Small Business Administration 504 Loan
Section 108 Loan Program
Tax Exempt Bonds

Southern California Business Development Fund

Business Development Description: The Southern California Business Development Partners Fund (BDF) is established to spur economic activity and promote revitalization in the County of Los Angeles. The major goals of the Fund are increasing the availability of capital to businesses that create jobs, and improving access to goods and services in low income communities. Further, the SCBDC seeks to leverage its funds by co-lending with its investor banks and with municipally supported economic development projects to satisfy project financing requirements.

Use of Funds: BDF may be used for fixed asset acquisition, equipment/machinery purchase, and leasehold improvements/rehabilitation. Working capital loans and refinancing are eligible under certain conditions.

Eligibility Criteria: The business must meet the following minimum requirements: (1) have at least two years positive operating history (2) must also exhibit good credit (3) show evidence of sufficient income to service the debt (4) demonstrate management expertise commensurate with the size and scope of the business and its market.

Loan Amounts: The funding limits are up to $250,000.

Fees: A $250 application fee is due upon submission of your application. Loan fees are approximately 2% - 3% of the loan amount.

Rate: The interest rate is set at closing and is at market rates based upon a risk analysis, collateral and management capacity.

Terms: The term of the loan is determined on a case-by-case basis. However, the maximum term shall not exceed the economic life of the asset, usually not exceeding 5 years.

Collateral: Collateral may be, but is not limited to real estate, equipment liens, and personal guarantees. The BDF may subordinate to a senior lender.