LA offering new loans to help boost small business

Friday, August 26, 2016
HIGHLAND PARK, LOS ANGELES (KABC) -- Los Angeles City Hall is opening up the purse strings with a $4 million investment in small businesses. The money is going to what City Hall calls the "15 Great Streets" - one for each council district.

North Figueroa in Highland Park is just like the others - lined with small business.
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Ruben Herrera is one of the first to qualify for a loan, to help expand his Highland Park glass-and-mirror business. He's planning to use the money to expand his product line and hire another 12-15 people.

The city loans can be as small as $1,000 or as much as $250,000.

Mayor Eric Garcetti says every vacant storefront depresses the local economy, discouraging shopping.

"Every time they see a vibrant one like this it helps everybody spend more time and spend more money on the streets," Garcetti said.
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Outside the city of LA's limits, the federal government's Small Business Administration has loosened its purse strings as well for small businesses.



Congress recently restarted a multibillion dollar program to help small businesses restructure their commercial loans. U.S. Rep. Judy Chu said older, more expensive conventional loans can be refinanced at today's low rates, around 4 percent, helping businesses free up more funds.

Other federal programs can help small businesses get started or grow, with amounts available from $150,000 to $5.5 million.
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