Gardena, CA Micro Loan Program

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Gardena, CA, US

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Type: Policy

Status: In effect

Source File:


MicroLoan Program

The City of Gardena Micro Loan Program is designed to assist small businesses in specifically designated areas of the City. Loan proceeds can be used to hire employees, purchase fixtures, equipment or machinery, and working capital; construction projects are ineligible for these loans.

Financial Provisions

  • Amount
Loan amounts range from $10,000 to $25,000.
  • Interest
Interest will be at the current CD rate at the date of funding the loan, plus two percent.
  • Fees
There will be a documentation fee of $100. The documentation fee will not be charged if the applicant is not approved for the loan. All fees and closing costs will be deducted from the loan proceeds, at closing.
  • Term
Loans $25,000 or greater are amortized over five years; all other loan amounts are amortized over three years.
  • Collateral
Collateral may be required, and if so, UCC filing fees, appraisal fee and other minor fees may be charged against the loan proceeds.
  • Evaluation
Loan applications and necessity of funding, are evaluated by the City of Gardena’s Micro-Loan Review Panel, based on applicant qualification, borrower need, fund availability and public benefit. The applicant must demonstrate the ability to repay the loan. Loans are not available to those businesses who have other sources of capital or have obtained a Micro-Loan from the City within the previous five years.
  • Credit Decision
The credit approval/disapproval is determined by the City's Micro-Loan evaluating committee. Businesses will be required to complete a bank credit application, as well as a City of Gardena Micro-Loan application.

Eligibility Requirements
In addition to the requirements listed in the micro-loan application the business must meet the following requirements in order to participate in the City’s Micro-Loan program, a business must:

  • Be physically located in and licensed by the City of Gardena; businesses having a Gardena mailing address, but not licensed by the City of Gardena, are ineligible
  • Have a satisfactory credit and repayment history; consent to credit verification by bank
  • Demonstrate ability to repay the loan
  • Execute an agreement with the City’s One Stop Employment Development Center committing to use the Center as the first source of recruitment for job(s) created after receiving the loan and when vacancies occur as a result of employee turnover
  • Execute agreement to hire at least one person if the amount of the loan is $35,000 or greater; business will have one year from the date of the loan funding to fulfill its hiring obligation
  • Complete all of the necessary paperwork associated with packaging loan

Would your business like to apply for a MicroLoan from the City of Gardena? Please contact the office of the City Manager at (310) 217-9504, or e-mail us at [email protected] for additional information.