COUNTY TECHNOLOGY LOAN PROGRAM
The County Technology Loan Program (CTLP) is a financing program for start-up and early-stage technology firms in Los Angeles County. The CTLP may take an interest in the firm in the form of equity, warrants or royalties.
How May I use Funds?
Loan proceeds may be used for working capital (for research, engineering and design services, prototype development and testing, market research and marketing) or equipment/machinery purchase. Proceeds are not available to refinance existing debts.
How Much Can I Borrow?
Loan amounts will range from $10,000 to $100,000. There is a minimum matching requirement of one dollar of additional investment for every dollar of CTLP financing. Applicants may be required to inject ten percent (10%) of the total project cost.
The applicant must demonstrate a financial need for CTLP. Firms and principals must demonstrate good credit and show evidence of repayment ability.
What is the Equity Program?
The CTLP may take an interest in the firm in the form of equity, warrants or royalty agreement.
What is the Current interest Rate?
Rate currently set at 1% above prime.
What is the Loan Fee?
The loan fee is 2 points, and may be paid from proceeds. In addition, the borrower will pay all costs associated with closing the transaction. These costs may include the preparation and filing of Uniform Commercial Code (UCC) documentation and/or Trust Deeds.
What are the Loan Terms?
The term for repayment will generally be based on the useful life of the assets being financed. Typically, working capital may be financed for 5-7 years, equipment/machinery for 7-10 years, and real estate for 15-20 years.
Is Collateral Required?
Collateral, including intellectual property, is required. The applicant must be willing to pledge collateral owned by the business or its principals. The CTLP will take a security interest in available assets and personal guarantees of all individuals with a substantial interest, defined as 10% ownership or more.
Contact:
Iris Alvarado, Senior Loan Officer
E-mail: Iris.Alvarado@lacdc.org
Phone: (323) 890-7044
Fax: (323) 890-8575
Rodolfo Quiroz, Loan Officer
E-mail: Rodolfo.Quiroz@lacdc.org
Phone: (323) 890-7202
Fax: (323) 890-8575