The initiative addresses a common barrier for small businesses: the lack of working capital to manage initial expenses
A new initiative in Los Angeles aims to level the playing field for small businesses seeking city contracts, offering competitive loans to cover upfront costs through the newly established City Contract Financing Program. The program, which opens applications today, is supported by a $1 million public-private partnership with Banc of California.
The initiative addresses a common barrier for small businesses: the lack of working capital to manage initial expenses like materials, equipment, and hiring while awaiting city payments. Eligible businesses can secure loans through the city’s Community Development Financial Institution partners, Lendistry and the Pacific Asian Consortium for Employment (PACE), to fund professional service contracts in fields such as architecture, engineering, legal services, marketing, IT, and project management.
To qualify, businesses must be located in the City or County of Los Angeles, hold a Business Tax Registration Certificate, and be in the process of securing a professional service contract with the city. The program, accessible via ProcureLA.com, has no cap on the number of applicants, encouraging broad participation.
The funding stems from a collaboration with Banc of California, which relocated its headquarters to Los Angeles and has emphasized the program’s role in economic growth. “The Los Angeles region is a major contributor to the California and national economies,” said Jared Wolff, chairman and CEO of Banc of California. “Public-private solutions like this will help prepare the city for major events like the World Cup and the 2028 Olympics, boosting businesses of all sizes.”
