City of Long Beach Receives $750,000 Federal Grant Award to Support Small Business Loan Programs

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PRESS RELEASE

Long Beach, CA - The City of Long Beach Department of Economic Development & Opportunity (Department) has received a $750,000 grant award from the U.S. Economic Development Administration (EDA) in support of the City's Revolving Loan Fund small business loan programs, which provide entrepreneurs and small business owners with access to capital to start and grow their business in Long Beach.

"This investment is a powerful opportunity to put more capital directly into the hands of Long Beach entrepreneurs and small businesses," said Mayor Rex Richardson. "By strengthening our small business loan programs, we are helping local businesses invest in their operations, create jobs, and build a stronger foundation for long-term growth. When our small businesses have the means to grow, our entire city benefits and thrives."

The City's small business loan programs include the Microenterprise Loan Program and Grow Long Beach Fund, which provide low-interest capital to small businesses that are unable to secure traditional bank financing, offering gap -financing options that promote job creation, job retention, economic diversification and long-term economic stability throughout Long Beach. Since 2001, the City has issued more than $7.9 million in loans, resulting in 650 jobs created or retained. The City's current loan portfolio includes 106 active loans totaling $3.8 million.

Approved by the Long Beach City Council with an 8 to 0 vote at its June 16, 2026, meeting, the grant award will expand the City's capacity to offer financing to small businesses. Through the grant, the City will be reimbursed for eligible small business loans issued through its loan programs. Loan amounts range from $10,000 microloans to larger loans of several hundred thousand dollars, depending on the needs and eligibility of the business.

Loans will carry fixed interest rates set in accordance with federal requirements, at the lower of 4% or 75% of the Wall Street Journal Prime Rate, with a maximum rate of prime plus 1%. Loan terms typically vary from five to 10 years, with a maximum of 25 years, and can be used for working capital, equipment purchases, business expenses, or leasehold improvements. Funds must be expended by Mar. 31, 2029. Those interested in applying for a small business loan should contact EDO's BizCare Hotline at 562.570.4BIZ (4249) or email [email protected].

"By helping bridge the gap between businesses and traditional financing, the City is investing in the entrepreneurs who are at the heart of our local economy," said EDO Director Bo Martinez. "These loan programs provide businesses with access to capital they need to strengthen their operations, pursue new opportunities and take their businesses to the next level. With the support of this federal grant, we can expand that access to capital and help more Long Beach businesses build, grow and thrive."

This expansion of the City's small business loan programs will strengthen efforts to support local entrepreneurs and ensure Long Beach businesses have access to the affordable capital they need to grow, innovate and thrive. This funding is expected to contribute to positive job growth and economic outcomes throughout Long Beach.

To learn more about the City's small business loan programs and other resources for small businesses, those interested can visit longbeach.gov/bizdev.

About the City of Long Beach
Long Beach is nestled along the Southern California coast and home to approximately 466,000 people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

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