OTHER NEWS - March 23, 1994

L.A. County Establishes Micro-Loan Program: The County Micro Business Loan Program will guarantee loans of between $5,000 and $50,000 made by private lenders to small companies. The program, established with $700,000 in Department of Housing and Urban Development funds sent to Los Angeles after the 1992 riots, is designed to encourage banks to make riskier or non-traditional loans to spur economic development. If a borrower defaults, the bank is reimbursed for the balance of the loan. The first lender to sign up is Bank of America Community Development Bank, which reached an agreement after negotiating with the County Community Development Commission and county Supervisor Yvonne Brathwaite Burke.