Long Beach receives $750,000 federal grant for small-business loans

Long Beach has been awarded a $750,000 federal grant from the U.S. Economic Development Administration to expand its small-business loan programs. The funding will support the city’s Revolving Loan Fund, which provides low-interest financing to entrepreneurs and businesses that struggle to secure traditional bank loans.

Specific initiatives supported by the grant include the Microenterprise Loan Program and the Grow Long Beach Fund. These programs offer capital for launching businesses, expanding operations, purchasing equipment, and job creation or retention. Loan amounts range from $10,000 microloans to several hundred thousand dollars for larger needs, with interest rates set at the lower of 4% or 75% of the Wall Street Journal prime rate.

The Long Beach City Council approved the grant on June 16 with an 8-0 vote. Since 2001, the city’s loan programs have issued over $7.9 million, resulting in the creation or retention of 650 jobs. The current loan portfolio consists of 106 active loans totaling $3.8 million.