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Los Angeles Mayor Eric Garcetti launches micro loan program for small business.

Los Angeles Mayor Eric Garcetti launches $11 million in microloans to help small business

City also puts moratorium on commercial evictions for those who can’t pay rent

In an effort to help small businesses through the coronavirus pandemic, Los Angeles Mayor Eric Garcetti on Tuesday announced an $11 million no-interest microloan program and ordered a moratorium on commercial evictions.

Earlier in the week, Garcetti issued an emergency order temporarily closing all bars and nightclubs that don’t serve food. Restaurants across the city are limited to delivery, takeout and drive thru service, but dining rooms must remain closed, at least through March 31.

Acknowledging that restaurants and other businesses could have a tough time paying rent, Garcetti said the moratorium on commercial evictions will also last until March 31, unless extended.

“No landlord shall evict a commercial tenant in the city of Los Angeles during this local emergency period if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic,” he said in a statement.

A provision in the order gives eligible tenants up to three months following the expiration of the local emergency period to repay any back due rent.

Across the country, other lawmakers are also freezing mortgage forclosures and rent evictions, mostly for individual households, but also for commercial tenants, like in Kansas.

Los Angeles’s microloan program includes loans of $5,000 to $20,000 for small businesses to help them retain jobs, particularly for low-income workers.

The mayor’s office has also developed a small business toolkit with resources.

Contact Lisa Jennings at [email protected]

Follow her on Twitter: @livetodineout

For our most up-to-date coverage, visit the coronavirus homepage.

TAGS: Management
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