Los Angeles Small Businesses Can Now Apply for Assistance to Secure City Contracts

$1 Million in Funding Provided by Banc of California

Mayor Karen Bass has announced that her office is encouraging local small business owners and entrepreneurs to apply for the Los Angeles Contract Financing Program, which was designed by the Mayor to help small businesses pursue procurement opportunities. A million dollars in funding to establish and facilitate the program was provided through a public-private partnership with Banc of California, which relocated its headquarters to the City of Los Angeles during Mayor Bass’ first year in office.

Many small businesses have been precluded from competing for City contracts because they lack the working capital to cover upfront costs while the City processes their payments. Through this new initiative, small business owners will be able to secure competitive loans to fund costs associated with fulfilling the new City contract. These loans will assist with securing the initial funds necessary to cover direct contract costs, such as materials, equipment and hiring employees to fulfill City contracts that might otherwise be a challenge.

“Opening Los Angeles for business means making City Hall an advocate for business,” said Mayor Bass. “I encourage small businesses to apply for the contract financing program with support and funding provided by Banc of California. With this funding, they can be more competitive to win and keep City contracts. With major events on the horizon, we want to make sure that small and local businesses have a new pathway with the contract financing program to compete for City contracts, now and in the future.”

“As the largest independent bank based in Los Angeles and the third-largest bank headquartered in California, Banc of California is proud to support small businesses through Mayor Bass’ contract financing program,” said Jared Wolff, chairman and CEO of Banc of California. “The Los Angeles region is a major contributor to the California economy and the national economy. We need public-private solutions, like this, to help accelerate rebuilding and to ensure the City is ready to take center stage at the upcoming World Cup and the 2028 Olympics. When Los Angeles businesses of all sizes can compete and thrive, there is a broader positive effect on the economy.”

The City Contract Financing Program will provide an opportunity for local small businesses to experience the contracting process and understand the steps needed to be a City contractor. This experience, along with the programming created by ProcureLA, will help small businesses be contract-ready for the numerous opportunities available for the FIFA World Cup and 2028 Olympics, as well as the urgent work around the rebuilding efforts in the Pacific Palisades.

Contract Financing Program eligibility requirements:

• Businesses must be located in the City or County of Los Angeles.
• Businesses must be in the process of being awarded a Professional Service Contract with the City of Los Angeles.
• Businesses must have a Business Tax Registration Certificate.
• Businesses must be competing for professional services contracts. Services include architecture and engineering, human resources and staffing, consulting, legal services, surveyors, accounting and bookkeeping, marketing and public relations, information technology, training and development, and project management.

The City’s Contract Financing Program establishes innovative financing partnerships that allow an unlimited number of eligible businesses to apply for the program and compete for financing. Loans to qualified borrowers will be funded by the City’s Community Development Financial Institution partners: Lendistry and the Pacific Asian Consortium in Employment (PACE).

Information sourced from Banc of California. To learn more, contact Jenn.Saylors@bancofcal.com.