Small businesses in Altadena impacted by the disaster leading to the January 7, 2025 Federal Declaration now have a vital lifeline. The Los Angeles County Development Authority (LACDA) has launched the Altadena Disaster Relief Small Business Loan Program, offering crucial financial support with an application deadline of Tuesday, June 3, 2025, at 12:00 p.m.
This timely program aims to provide essential working capital to local businesses striving to recover, retain or create jobs, and continue serving the Altadena community. With up to 80 loans anticipated, eligible businesses are urged to apply quickly as applications are processed on a first-come, first-served basis.
What is the Altadena Disaster Relief Small Business Loan Program?
Administered by LACDA, this program is a direct response to the hardships faced by local enterprises following the disaster. It’s designed to inject working capital into businesses that are fundamental to the economic fabric and daily life of Altadena residents.
Loan Details: What Financial Support is Available?
Understanding the financial strain on affected businesses, LACDA has structured these loans to be as supportive as possible:
- Loan Amount: Up to $75,000
- Interest Rate: 0% for the first 60 calendar months. A fixed interest rate of 3% will apply from the 61st month through the loan’s maturity (180th month).
- Loan Term: 15 years.
- Payment Deferral: Significantly, both loan payments and interest accrual are deferred for the first 60 calendar months. Principal and interest payments will commence on the 61st month.
- Job Creation/Retention: Businesses must retain or create a minimum of one full-time equivalent job per $75,000 of loan assistance.
- Prepayment Penalty: None.
Is Your Altadena Business Eligible? Key Criteria:
To qualify for the Altadena Disaster Relief Small Business Loan, businesses must meet several criteria:
- Disaster Impact: Applicants must demonstrate their business was impacted by the disaster through a hardship statement, explaining any temporary closures, revenue reduction, and how loan funds will address these impacts.
- Location: Must occupy a physical storefront within unincorporated areas of zip codes 91001 and 91104. (Note: Home-based, online businesses, street vendors, and food trucks are ineligible).
- Operational Status: Must be open to the public at the time of application.
- Time in Operation: Minimum of six months in operation at the time of application.
- Financial Standing:
- Good credit management is required (minimum FICO score of 620, with potential exceptions for extenuating circumstances).
- Applicants must provide 2023 Business Tax Returns, 2024 Financial Statements (balance sheet and income statements), and interim financial statements for Q1 – 2025.
- Good Standing: Must have an “active” status with the Secretary of State.
- Application Limit: One application per legal entity.
A detailed list of ineligible business types (e.g., certain financial businesses, passive landlords, nightclubs, cannabis shops) is available on the LACDA website.
How Can Loan Funds Be Used?
The loan is intended for working capital. Eligible uses include:
- Employee payroll
- Business rent
- Purchase of inventory
- Day-to-day operational needs
- Payment of outstanding business expenses
Funds cannot be used for activities like real estate investment for personal gain, refinancing certain debts, or illegal activities.
Application Deadline is Fast Approaching: Apply by June 3, 2025!
Time is of the essence for Altadena businesses seeking this relief. Applications will be accepted until Tuesday, June 3, 2025, at 12:00 p.m.
How to Apply: Businesses should visit the official program website at altadenabizrelief.lacda.org to:
- Verify address eligibility.
- Review all documentation requirements thoroughly.
- Access the online application portal via the “Apply Now” button.
Missed the Webinar?
LACDA hosted a webinar explaining the program. If you missed it, a replay is available on their website, providing valuable insights into the application process and program details.
Where to Get More Information
For complete details, FAQs, eligibility maps, and to apply, please visit: Website: altadenabizrelief.lacda.org Call: (626) 586-1760 Email: [email protected]
Don’t miss this opportunity if your Altadena business has been affected. Prepare your documentation and apply before the June 3rd deadline!
