Metro Small Business Loan Program


First Round of Transit Oriented Communities Small Business Recovery Loan Program Application Period Closes Tomorrow

The application portal for the Transit Oriented Communities Small Business Recovery Loan Program’s first round will close TOMORROW! Eligible Los Angeles County small businesses located within ¼-mile of a Major Transit Stop must submit their completed application by 5pm on Friday, June 26th

Applications submitted after June 26th will be reviewed on a rolling basis, subject to funding availability.

Transit Oriented Communities Loan Program Details

  • Business Location Requirements

    Business Location
    Only businesses located within a quarter-mile of a Major Transit Stop are eligible for this TOC Loan Program.

    Please use this tool to verify your business location.

    All applications will be subject to address verification by LACDA staff. 

    What is a Major Transit Stop?
    A Major Transit Stop as defined by California Public Resources Code Section 21064.3 is:

    (a) An existing rail or bus rapid transit station.
    (b) A ferry terminal served by either a bus or rail transit service.
    (c) The intersection of two (2) or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.

    In addition, for purposes of this TOC Loan Program, the site of a future Major Transit Stop for an environmentally-cleared fixed guideway transit project shall be eligible.  This would include Metro rail stations under construction (Crenshaw/LAX, Regional Connector, Purple Line Extension, and Foothill Gold Line Extension). 

    Use this mapping tool to confirm if your business is located within a quarter-mile of a Major Transit Stop.

  • Loan Details

    Maximum Loan Amount

    Funding Availability
    Approximately $850,000 is available for the TOC Loan Program, which will fund approximately 40 loans.

     of Funds

    TOC Loan proceeds can be used for working capital only:

    1.   Employee payroll*
    2.   Employee sick time payroll
    3.   Rent, utilities, and insurance
    4.   Working capital to continue operations
    5.   Payment of outstanding business expenses
    6.   Adaptive business practices needed to remain open

    *Businesses that received an SBA Paycheck Protection Program (PPP) loan, are still eligible for this TOC Loan Program.

    Geographical Limitations
    To ensure geographic distribution of funding, only up to THREE (3) loans per zip code will be funded. 

    Application Limits
    Only one (1) application per business owner will be considered. Owners of multiple businesses may only submit one (1) application for one (1) of their businesses that is located within the target area.

    Employee Count
    Only businesses with 25 or fewer employees are eligible.

    Eligible Business Type
    Business must be a for profit operational business; non-profit organizations are not eligible for this TOC Loan Program.  Please see below for a fuller list of Ineligible Businesses.

    Businesses that have already received assistance from other LACDA programs, such as the Small Business Recovery Loan Program, are not eligible for this TOC Loan Program.  Businesses that have received assistance from the SBA Paycheck Protection Program (PPP) are eligible for this TOC Loan Program.

    Job Retention
    The business must retain one full- or part-time job for a period of 24 months from the date of execution of the loan agreement.  The business owner's own position will count toward this requirement.

  • Loan Terms

    Interest Rates
    4% or 75% of WSJ Prime, whichever is lower. 
    As of today, WSJ Prime is 3.25%.  Therefore, 75% of WSJ Prime is 2.44%.

    Loan Term
    5 years


    Origination Fees

    Payment Deferral
    Payment of principal and interest is deferred for the first 12 months.

    For a $20,000 loan, monthly payments will be $437.75 starting in month 13 over the remaining 48 months.  

    Prepayment Penalty

    The borrower(s) will be required to provide information as outlined in the loan agreement on an annual basis starting on the first anniversary of loan funding.
  • Business Owner Requirements

    All business owners with a 20% or greater ownership interest must submit a copy of ONE (1) government-issued identification. All owners will be required to sign the loan agreement.

    Guarantees will be required for all owners with a 20% or greater ownership interest.

    Tax Obligation
    The business owner must not have any delinquent taxes owed.

    Credit Reports
    All applicants will be required to provide the underwriter a written release to obtain a credit report.  Only FICO scores of 620 or above will be considered for the TOC Loan Program. In addition, an application may be rejected if a credit analysis shows any of the following within the past three (3) years: bankruptcy, foreclosure, repossession, a pattern of late or non-payments of any other debt (including utility bills), liens, owed child support, etc.

  • Business Operation Requirements

    COVID-19 Impact
    The applicant must show that the business was impacted by COVID-19 through a hardship statement including details about its closure and/or a reduction in revenue.  

    Financial Stability
    The applicant must show stable income in the past two (2) years and profitable business operations in the most recent fiscal year.

    Ability to Repay
    The ability to repay shall be calculated using earnings before taxes, interest, depreciation and amortization from the last full fiscal year provided by applicant. A minimum 1:1 debt coverage ratio (DCR) is required. 

    Good Standing Confirmation
    The business must be in “active” status with the California Secretary of State. Please check your status at:

  • Ineligible Businesses

    -  Corporate-owned fast food restaurants (franchisees are eligible)

    -  Check cashing, liquor stores, smoke/cannabis shops, firearms retailers, pawn shops

    -  Non-profit organizations

    -  Real estate salespersons

    -  Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (pawn shops, although engaged in lending, may qualify in some circumstances)

    -  Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under § 120.111)

    -  Life insurance companies

    -  Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify)

    -  Pyramid sale distribution plans

    -  Businesses deriving more than one-third of gross annual revenue from legal gambling activities

    -  Businesses engaged in any illegal activity

    -  Private clubs and businesses which limit the number of memberships for reasons other than capacity

    -  Government-owned entities (except for businesses owned or controlled by a Native American tribe)

    -  Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting

    -  Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans

    -  Businesses with an Associate who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude

    -  Businesses in which the Lender or CDC, or any of its Associates owns an equity interest

    -  Adult businesses which:

          (1) Present live performances of a prurient sexual nature; or

          (2) Derive directly or indirectly more than de minimis gross revenue through the sale
          of products or services, or the presentation of any depictions or displays, of a
          prurient sexual nature.

    Businesses that have already received assistance from other LACDA programs, such as the Small Business Recovery Loan Program, ARE NOT eligible for this program. 


  • Application and Award Process

    The TOC Loan Program will be available on a first-come, first-served basis with a limitation of up to three (3) loans per zip code to ensure geographic distribution of the available funds.

    Step 1.
    Submit a complete application (including all required documentation) through this website beginning at 12:00 PM on June 8, 2020 and ending at 5:00 PM on June 26, 2020. Please see below for a list of required documents.

    Step 2.
    You will be contacted by a LACDA representative within 5 days of the application closing period.

    Step 3.
    LACDA will begin the underwriting process. Only applications that are complete, with all of the required documentation, will be reviewed and underwritten. Incomplete applications will be rejected.

    Step 4.
    If your business is chosen to receive a loan, you will review and sign the loan agreement and all other pertinent documents.

    Step 5.
    Fund disbursement. The approximate processing time between a completed application (including all required documentation) and fund disbursement is 2 weeks.


    Required Documents

    All required documents must be uploaded through the online application portal during the application period (from June 8, 2020, at 12:00 PM to June 26, 2020, at 5:00 PM):

    1. Proof of financial stability - Applicant must show stable income in the past two years and profitable business operations in the most recent fiscal year.

       -   All business owner(s) with a 20% or greater ownership interest must submit tax returns for the last two (2) years. If 2019 tax returns have not been filed, applicant(s) can submit returns for 2017 and 2018 along with a 2019 balance sheet and profit and loss statement.

       -   Last two (2) years of personal tax returns of applicant(s)

       -   Fiscal year-end business financial statements within 60 days of the application date: Cash Flow, Profit & Loss Statement, Balance Sheet, Statement of Changes in Equity

       -   Last two (2) months of business and personal bank statements

    2.  Proof of business location by uploading a copy of current business license.

    3. Copy of one (1) government-issued identification for all business owners with a 20% or greater ownership interest.

    4. Other documents that may be needed based on your specific situation:

       -   Lease agreement

       -   For corporations: copy of recorded Articles of Incorporation and Bylaws

       -   For partnerships (general or limited): copy of Partnership Agreement and GP-1 or LP-1

       -   For LLCs: copy of recorded Articles of Organization and Operating Agreement

       -   For sole proprietorships: recorded Fictitious Name filing, if available

       -   If a trust is involved: Trust Agreement and names of trustees and signors

       -   Other document(s) that may be requested by LACDA.

  • FAQs

    Is this a grant?
    No, this is a loan that requires repayment.

    Can someone help me submit an application?
    Yes, our partners at the Small Business Development Center (SBDC) are able to assist you. Visit

    Can someone help me in a different language?
    Please email for assistance in the following languages: Spanish, Cantonese, Mandarin, and Russian.

    If I apply for this TOC Loan Program, can I apply for the SBA Paycheck Protection Program (PPP) in the future?
    Yes, you can apply for both.

    My company branched off less than 2 years ago. Am I eligible to apply?
    No, your business needs to have been a standalone operation for at least 2 years.

    My personal residence is within the qualifying location boundaries.  Am I eligible?
    No, eligibility is based on the location of the business and noted on the business license.

    Can I apply if I work for a rideshare company such as Uber or Lyft?
    Unfortunately, you are not eligible for this TOC Loan Program.

    My business is run from home. Do I include my lease information?
    If you lease your home, yes. If you own your home, no.

    If I don’t qualify for this TOC Loan Program, are there any other resources to help me?
    Yes, please see the following resources:

    Emergency Resources for Small Business

    LA County Disaster Help Center

    Los Angeles Economic Development Department

    Who can assist me with technical issues?
    Please email for help with any technical issues, such as:

    -  Resetting passwords

    -  Accessing your account

    -  Error messages

  • More Questions?

    Please direct all other questions to:

    Phone: (626) 943-3818


apply now


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