A $50 million initiative for LA’s most at-risk businesses was recently announced by Gov. Newsom. It is hoped that all California firms with up to 750 employees will be able to benefit from the Small business Loan Guarantee Program, funded by the taxpayer.
The endeavor is being undertaken by the California Infrastructure and Economic Development Bank (IBank), in an effort to offer some aid to the smaller firms that are undergoing losses that have resulted from the COVID-19 global pandemic. These are those which will not qualify from the $349 billion that nationwide, the federal government has earmarked for small businesses in “forgivable loans.” This is because the process of getting an SBA loan is not so simple and thus excludes many business owners who need the money.
This micro-loan announced by Newsom is to help those who would otherwise “fall through the cracks.”