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ACTION ITEM - Discussion and Consideration of a Small Business Loan Program and a Financing Referral Program.
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Meeting Date: August 26, 2026
Contact Person/Dept.: Elizabeth Garcia, Economic Development Project Manager
Phone Number: (310) 253-5708
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Attachments: Yes [x] No []
Public Notification: (E-Mail) Meetings and Agendas - GovDelivery (08/204/2026), Chamber of Commerce (08/204/2026)
Department Approval: Adam Troy, Assistant City Manager ( ) ____________________________________________________________________
RECOMMENDATION
Staff recommends the Economic Development Subcommittee discuss and consider a small business loan program and a financing referral program.
BACKGROUND/ DISCUSSION
In XXXXFebruary 2026, tThe Economic Development Subcommittee requested staff review potential third-party loan programs to support small business operations and expansion efforts. that the City can either participate in or engage with local lenders. Staff conducted a comprehensive review of programs from neighboring cities and found there is also a need for small business mid-market loansto assess options and opportunities to support . The “missing middle” refers to small and mid-sized businesses that have outgrown start-up funding, but do not qualify for large commercial loans. , such as banks. Mid-market loan borrowers typically have good credit but are not quite finance-ready to apply for a bank loan that requirerequires proven track records, steady cash flow and valuable assets. XXXX and XXX terms (add why they are not able to apply).
Community Development Finance Institutions (CDFIs) however, however, typically provide smaller loan products that can provide flexible underwriting criteria including alternative cash flow analysis and accepting lower credit scores XXXX. s and banks typically focus on larger loans with higher and varied interest rates. The City has two options that it can explore further to connect Culver City businesses to financing opportunities which includes a potential partnership with the Grow America Fund and/or establishing a loan referral program.
Grow America Fund Loan Program
Currently, the City of Inglewood and the City of Long Beach provide mid-market loans through the Grow America Fund. The Grow America Fund is operated through Grow America (formerly the National Development Council) and specializes in small business lending designed to catalyze job creation in underserved communities. Grow America currently operates as a Small Business Administration (SBA) lender to issue loans ranging from $150,000 to $2 million.
Consideration of a loan program would require a partnership with Grow America and 25% of the total fund amount. Grow America would leverage the fund four times over through the Small Business Administration (SBA) 7(a) Program and provide loan guarantees for the loans via the SBA. For example, the minimum minimum program fund amount is a $1 million loan fund, which would require the City to contribute a minimum of $250,000 one-time contribution towards the loan fundto participate. The City wouldwill not be required to reinvest more funds, unless it chooses to do so in the future.
The fund program would be managed as the City’s own revolving loan fund would be administered as a revolving loan fund which would be reinvested in future loans. Grow America would be the program administrator which includes processing applications, loan reviews, underwriting and servicing. The City would be involved in the loan selection based on underwriting recommendations as well as be required to do outreach to Culver City businesses. Loan specifics including loan amounts will depend on the total loan fund and will be determined with the City and Grow America.
The Grow Long Beach fund currently provides loans between $100,000 to $5 million, with an interest rate based on the Wall Street Journal prime rate plus 2.75% (currently at 8.75%) and fund can be used for tenant improvements, construction, working capital, equipment, etc.
Grow America operates as a Small Business Administration (SBA) lender to issue loans ranging from $150,000 to $2 million.
Grow America will complete the administrative work including applications, loan reviews, underwriting and servicing. The City would be required to do outreach for the program and implement a marketing effortstoolkit would be provided. Based on staff experience managing a revolving loan fund with another cities, the administrative work completed by a third party provides objective and expert administration of the program. Staff would not recommend creation of a program where existing staff administers internally.
Action: Staff recommends the Economic Development Subcommittee discuss and provide feedback on the loan program, direct staff to explore city protocols for implementation of this program.
Small Business Financing Referral Program
Additionally, the City may wish to consider creating a small business finance referral program. In the Los Angeles region, there are several CDFI institutions which provide loans and micro-loans to small businesses throughout LA County. Staff have compiled a list of CDFIs (Attachment 1) and related loan programs that Culver City businesses can take advantage of. An eExamples of such a program includes the LISC Working Capital Fund which provides a 3% interest rate, various collateral options and a low minimum credit score for working capital loans from $100,000 to $500,000. Another example is xxxxx,xxxxx the Working Solutions SBA Microloan program which provides microloans starting at $5,000 to $100,000 with no minimum credit score, no collateral, but a 11% fixed interest rate.
Action: Staff recommends the Economic Development Subcommittee discuss and provide feedback on the small business financing referral program, which establishes relationship with CDFIs and other lending institutions to ensure that Culver City businesses have access to financing at all levels.
Action: Staff recommends the Economic Development Subcommittee discuss and provide feedback on the loan program, direct staff to explore city protocols for implementation of this program.
ATTACHMENTS
1. CDFI Loan Program List
