Armanino Blog

Beyond PPP and EIDL: Other COVID-19 Loans for California and LA Businesses

April 13, 2020

By now many small-business owners are aware of the government loan programs under the CARES Act, such as the Payroll Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). But there are also other programs available to businesses in California and Los Angeles.

Below are two other COVID-19 borrowing opportunities that are not as well publicized.

California COVID-19 Disaster Relief Loan Guarantee Program

This program helps to provide loan guarantees and direct loans for small businesses that may not be eligible for other programs or lending. A loan guarantee helps limit up to 95% of the risk to lenders, thus increasing the likelihood of loan approval for the applicant.

Who is eligible?

  • Small businesses located in California with under 750 employees that have been affected by disruption due to COVID-19
  • Eligible nonprofits

What are the terms?

  • Guaranteed up to 7 years
  • Guarantees up to 95% of the loan
  • Loan interest rates are negotiated between the lender and the borrower
  • Qualifications based on lender criteria

What can you use the loan for?

  • The funds are meant to help small businesses continue operations

How do you apply?

  • Loans can be applied for with participating lenders; for a list of lenders and more information visit

Los Angeles City Small Business Emergency Microloan Program

This loan program is available to small businesses in the city of Los Angeles who need working capital.

How much can you borrow?

  • Loan amounts range from $5,000 up to $20,000

What are the loan specifics?

  • Term: 18 months to 5 years
  • Interest rate:
  • Option 1: Interest 0% for 18 months (repayment deferred for 6 months) Option 2: For-profit – 3% for a term of 5 years (deferred payment of up to 12 months)
    Nonprofit – 2% for a term of 5 years (deferred payment of up to 12 months)
  • No prepayment penalty
  • No loan fee, administrative fee or applicant fee

What can you use it for?

  • Business working capital (keeping your business running, operational expenses)

Who is eligible?

  • Businesses with under 100 employees that have been affected by COVID-19

Other requirements

  • Personal guarantee from all owners with 20% ownership or more.
  • No credit minimum, but owners must have a reasonable credit history and demonstrate that the business had historic profits that could support repayment.
  • Collateral is evaluated on a case-by-case basis.
  • Requires a Los Angeles city business license on file prior to March 1, 2020.
  • Business must be physically located in a commercial-use building in the city of Los Angeles boundaries (map on website).
  • For more information go to:

For the latest regulatory updates and other information on running your business through disruption, visit our COVID-19 Resource Center.

April 13, 2020

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