HOW WE CAN HELP YOU
The Altadena Disaster Relief Small Business Loan Program was created in response to Federal Declaration on January 7, 2025. These loans aim to provide working capital to businesses that create or retain jobs and offer goods or services to local residents. Applications will be processed on a first-come, first-served basis.
Documentation
What Do I Need To Have Available?
For Your Application
2023 Business Tax Returns (If Established)
2024 Financial Statements (Balance Sheet and Income Statements)
Interim Financial Statements for Quarter 1 - 2025
Business License
Credit Authorization
Lease Agreement
IRS Form W-9
To Fund The Loan
Executed Loan Documents
Corporate Resolution
UCC-1 Filing
Loan Disbursement Package
Loan Amount: Maximum of $75,000
Interest Rate: 0% for the first 60 calendar months; 3% fixed interest effective on 61st calendar month through 180th month (loan maturity).
Loan Term: 15 years
Payment Deferral: Loan payments and interest accrual are deferred for first 60 calendar months for loans. Principal and interest payments will be due and payable starting on the 61st calendar month from funding date over a 10-year amortization (180th month).
Loan Funds Disbursement: Loan funds will be disbursed directly to borrower.
Job Creation: A minimum of one full-time equivalent job must be retained or created per $75,000 of loan assistance.
Prepayment Penalty: None
Funds are to be used for working capital such as:
- Employee payroll;
- Business rent;
- Purchase of inventory;
- Day-to-day operational needs; and
- Payment of outstanding business expenses.
- Acquisition of an equity position in a private business;
- Interest payments on an existing loan;
- Equity contributions under Federal Agency loan programs;
- Acquisition interest in a business either through the purchase of stock or through the acquisition of assets;
- Investment in interest-bearing accounts, certificates of deposits, or any investments unrelated to the objectives of the loan program;
- Relocation of jobs from or to another labor area;
- Real estate investment for personal gain not related to business expansion or need;
- Collateral to obtain credit or other financing;
- Support for County operations or administration;
- Activities that would violate EDA Property regulations outlined in 13 CFR part 314;
- Gambling activity, performances or products of a prurient sexual nature, or any illegal activity, including the cultivation, distribution, or sale of marijuana that is illegal under Federal law;
- Lines of credit; or
- Household or consumer purposes.
Missing Documents
Applicant will have five business days to provide missing items; otherwise, the application will be deemed incomplete and not considered for funding.
Document Signatures
Applicants will have 10 business days to provide all required signatures; otherwise, the application will be closed and not considered for funding.
Operation Status: Business must be open to the public at the time of application submittal.
Location: Business must occupy a physical storefront location within an unincorporated area of zip codes 91001 and 91104.
Minimum time in Operation: Applicant must have been in operation for a minimum of six months at time of application. Applicant shall provide proof of operation through documentation such as business license, lease, or other documentation as deemed appropriate by the Los Angeles County Development Authority (LACDA).
Application Limit: Only one application per legal entity will be accepted. The LACDA reserves the right to limit the number of applications submitted per principal and/or business.
Uniform Commercial Code (UCC-1) Filing: Required for all loans.
Credit Reports: Hard pull credit report required. Applicant shall provide underwriter direct written release to obtain personal and business credit report for borrower(s).
Credit Score: Must show good management of credit. Minimum FICO score of 620, but may use lower score for those with extenuating circumstances.
Financial Stability: Applicant must provide 2023 Business Tax Returns, 2024 Financial Statements (balance sheet and income statements), Interim financial statements for Quarter 1 – 2025, and financial feasibility of the applicant and principal owner(s) repaying the loan.
Good Standing: Business must have an “active” status with the Secretary of State. Please verify the business active status at: https://bizfileonline.sos.ca.gov/search/business
Disaster Impact Statement: Applicant must:
- show that business was impacted by the disaster through a hardship statement.
- provide explanation of what has been done to address the impacts of the disaster on the business (i.e., pivot, online sales, etc.).
- describe how the loan funds address the disaster impact.
The following business types may apply for the Disaster Relief Small Business Loan Program:
- Restaurants, coffee shops, bakeries, cafés, gastropubs, etc.;
- Salons, barbers, and other grooming businesses;
- Gyms, day spas, and fitness studios;
- Retail and commercial stores (consumer goods, electronics, appliances, health, sporting goods, furniture, clothing and shoes, kitchen equipment, books, entertainment, music, and audio/visual equipment, etc.); and
- Others not on the ineligible list.
The following businesses are NOT eligible for the Disaster Relief Small Business Loan Program:
- Financial businesses primarily engaged in the business of lending (banks, finance companies, pawn shops, factors, and cashing businesses);
- Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under § 120.111);
- Life insurance companies;
- Businesses located in a foreign country or with foreign entities with a business interest greater than 20%;
- Pyramid sale distribution plans;
- Businesses deriving more than one-third of gross annual revenue from legal gambling activities;
- Businesses engaged in any illegal activity;
- Private clubs and businesses which limit the number of memberships for reasons other than capacity;
- Government-owned entities (except for businesses owned or controlled by a Native American tribe);
- Businesses principally engaged in teaching, instructing, counseling, indoctrinating religion or religious beliefs, whether in a religious or secular setting;
- Loan packagers earning more than one-third of their gross annual revenue from packaging Small Business Administration loans;
- Businesses with an associate who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude;
- Businesses in which the lender, or any of its associates owns an equity interest;
- Businesses which:
- Nightclubs;
- Check cashing, liquor stores, smoke/cannabis shops, and firearms retailers;
- Any business (or its principals, associates, or management) have been debarred from doing business with the County, State, or Federal government, or is on any Office of Foreign Assets Control or similar list;
- Real Estate Companies;
- Home-based or online businesses; and
- Street vendors and food trucks.
1. Present live performances of a prurient sexual nature; or
2. Derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature;
Small Business Loan Program
FREQUENTLY ASKED QUESTIONS
1. What is the loan selection process?
Applications will be evaluated in the order that they are received. Eligible businesses will be funded based on their credit score, address verification, status of the business at the time of application, and completion of all required documentation within the established timeframes.
2. Can I be disqualified based on my credit score?
You may be disqualified if your credit review shows the following within the past three years: bankruptcy, foreclosures, repossession, pattern of late payments on other debt, owed payments to utility companies, liens, owed child support, etc. Medical or student accounts should not be taken into consideration.
3. How many small business loans will the LACDA fund?
The LACDA anticipates funding up to 80 loans.
4. Do I qualify if the wildfire and winds did not impact my business?
No, the applicant must show that the business was impacted by the disaster through a hardship statement including a description about temporary closure and reduction in revenue.
5. Am I eligible for this loan if I’ve received FEMA assistance?
Yes, applicants that have already received assistance from FEMA may apply for loan.
6. Can I apply for a loan for my foodtruck or pop-up food stand?
No, applicants must occupy a physical storefront location at the time of application. Street vendors and food trucks are not eligible.
Contact
Small Business Support
Virtual Webinar
Call Us
(626) 586-1760
Email Us
altadenabizrelief@lacda.org