City of Los Angeles Gap Financing Loan Program

City of Los Angeles Gap Financing Loan Program


The City of Los Angeles Gap Financing Program aims to support equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention. Forgivable grants and loans are available for qualified projects ranging from $500,000 to $1,500,000.

The Gap Financing Program will fund economic development projects involving the acquisition, new construction, and/or substantial rehabilitation of commercial, industrial, and mixed-use developments (commercial component only). Funded projects will focus on developing:
Economic Growth
Promoting Economic Growth of New Business and Industry
Jobs
Job Creation and Retention
Diversified Economy
Diversification of the Los Angeles Economy
The Economic and Workforce Development Department seeks to fund qualified and shovel-ready projects that will provide economic development and community benefits while ensuring that the project is eligible at the program and underwriting levels. Potential projects must start construction within 18 months of the forgivable grant agreement/loan agreement execution to ensure gap financing investment dollars are deployed in a timely manner for maximum community benefit.



IS YOUR PROJECT A CANDIDATE?


Do any of these questions apply to your proposed project?
  • Is the proposed project within the City of Los Angeles boundaries?
  • Is the proposed project a commercial, industrial or mixed-use project?
  • Has the proposed project received all entitlement and permits?
  • Will the proposed project start construction within 18 months of loan approval?
  • Has the proposed project received all funding commitments?
  • Has the proposed project a confirmed funding gap that is no more than $1.5 million?
  • Will the funds be used for construction, rehabilitation, equipment, relocation, and indirect or soft costs associated with these activities?
  • Will the proposed project create/retain jobs or provide needed goods/services to low- and moderate-income residents?
If you answer "YES" to most of these questions, your project might be a good candidate for gap financing. For additional information, please fill out EWDD's Loan Program Intake Form so that we can better assist you!





WHAT IS GAP FINANCING

two illustrated stick figures placing the missing puzzle piece in a bridge representing the missing financial piece, or funding gap, of an economic project
A “funding gap” is the difference between the cost of a project and the committed funding sources. Also referred to as bridge or interim financing, gap financing is a short-term loan for the purpose of meeting an immediate financial obligation until a longer-term financial loan can be secured. EWDD offers this type of financing for commercial projects, industrial projects, and the commercial or industrial portion of mixed-use projects.

Types of eligible recipients include partnerships, corporations, sole proprietorships, public agencies, and non-profits with a demonstrable record of operations.




EVALUATION CRITERIA


The goal of the Gap Financing Program is to support the equitable economic recovery and revitalization of Los Angeles by assisting real estate projects that provide economic development opportunities via support to businesses and job creation/retention.

Potential projects must be shovel ready, meet CDBG Program Underwriting requirements, and must be located within the City of Los Angeles. Use the LA City Neighborhood Info Tool to determine the location of your business or development project.




ELIGIBILITY

Eligible Activities

  • Land Acquisition
  • Off-site or on-site improvements
  • Building construction/renovation/expansion
  • Clearance and demolition
  • Parking facilities
  • Purchase or long-term lease of equipment
  • Relocation
  • Interior and/or exterior rehabilitation, restoration or alteration of commercial properties-leasehold, seismic, or other improvements
  • Purchase of commercial property for expansion of an on-going business
  • Indirect or soft costs associated with the above activities

Funding Requirements

Community Development Block Grants (CDBG). All projects must meet at least one National Objective:

  • Benefit to low-and moderate income (LMI) persons;
  • Aid in the prevention of slums or blight; or
  • Meet an urgent need



CONTACT


If you are interested in applying for one of EWDD's loan programs, please fill out EWDD's Loan Program Intake Form so that we can better assist you! EWDD BusinessSource Centers are also able to assist with more information and in preparing applications. Centers are located throughout the city - find the center closest to you!

BusinessSource Center Locations:






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