The City of Los Angeles has launched a $1 million loan program to support local small businesses contracting with the city, helping them cover upfront costs such as materials, equipment, and staffing. The initiative aims to strengthen the local economy ahead of the 2026 FIFA World Cup and the 2028 Los Angeles Olympic and Paralympic Games.
Mayor Karen Bass announced the Contract Financing Program in an October 6, 2025 press release, encouraging small business owners to apply through ProcureLA.com. The program provides loans at below-market interest rates to help companies fulfill city contracts while waiting for payments to be processed.
The funding was made possible through a public-private partnership with Banc of California, which relocated its headquarters to Los Angeles during Bass’s first year in office. “Opening Los Angeles for business means making City Hall an advocate for business,” Bass said. “With this funding, small businesses can be more competitive to win and maintain city contracts.”
Eligible applicants must be located in Los Angeles city or county, hold a Business Tax Registration Certificate, and either have or be in the process of securing a professional services contract with the city. Qualifying industries include architecture, engineering, legal services, accounting, marketing, information technology, consulting, education, and project management.
Loans will be distributed through the city’s Community Development Financial Institution (CDFI) partners, Lendistry and the Pacific Asian Consortium for Employment (PACE). The maximum loan amount is $300,000 or 20–30% of the contract value, with repayment terms of up to 24 months. Approved funds are typically disbursed within 10 days, with a 2% origination fee applied at loan execution. Interest rates are set below market levels and vary by loan amount.
Jared Wolff, chairman and CEO of Banc of California, said the program highlights the importance of public-private collaboration to strengthen the local 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,” Wolff said.
Bass emphasized that the initiative is part of a broader effort to make Los Angeles “open for business,” helping local and minority-owned small firms compete for major city projects and access new funding opportunities. In addition to this program, Bass recently launched the Business Navigator portal to streamline permitting, procurement, and resource access for small enterprises.
BY YOONSEO SONG [song.yoonseo@koreadaily.com]
