L.A. Launches $15-Million Loan Program for Exporters

Mayor Tom Bradley put City Hall in the banking business Thursday by launching a new $15-million loan program designed to help small- and medium-sized exporters in the Los Angeles area.

The export finance program--with funds made available by Imperial Bank of Los Angeles and guaranteed by the Export-Import Bank of the United States--is the city’s first public-private partnership to make funds directly available to local exporters. The mayor opened an office last September to help increase Southern California’s trade business.

Until now, the city worked with the Ex-Im Bank only on loans or loan guarantees to foreign buyers of American-made goods who purchased their products from local sources. In contrast, the program unveiled Thursday makes loans to the sellers or exporters of the U.S. products.

“This $15-million loan fund will give a shot in the arm to small- to medium-sized businesses which need working capital to help finance their entry into marketplaces in Pacific Rim countries and other nations overseas. Exports by the firms we assist through this loan fund will help create new jobs and boost the city’s economy,” the mayor said at a news conference attended by Imperial Bank President and Chief Executive Norman P. Creighton.

City officials said loan applications from businesses with a track record in exporting will be accepted and processed by the City Economic Development Office at City Hall. The applications go to the Ex-Im Bank’s Washington offices for final approval.

Exporters within a 60-mile radius of Los Angeles, which includes fringes of Orange, Riverside, San Bernardino and Ventura counties, are eligible. No minimum or maximum limits have been established on the short-term loans of 360-day maturity at interest rates pegged at 1.75% above the prime rate.