Long Beach Secured $750,000 Federal Small Business Grant
The city will use the new federal funding to expand its loan programs for local small businesses.
Updated on Oct. 12, 2026 in Financial Aid
Live Poll
Should local governments offer direct small-business loans to companies that cannot get bank financing?
The U.S. Economic Development Administration has awarded a $750,000 grant to Long Beach to support the expansion of small-business lending. The Long Beach City Council approved the award in an 8-0 vote to bolster capital access for local entrepreneurs.
Why it matters
This grant provides essential financing to businesses that struggle to secure traditional bank loans. By expanding its lending capacity, the city aims to continue driving job creation and support economic stability for local merchants.
The city has issued over $7.9 million in loans since 2001, creating or retaining 650 jobs. Current loan interest rates are capped at 4% or 75% of The Wall Street Journal prime rate, with terms reaching up to 25 years.
The players
U.S. Economic Development Administration
This federal agency is a bureau within the U.S. Department of Commerce that provides grants for regional economic development initiatives.
Long Beach City Council
This governing body is responsible for setting municipal policy and overseeing the financial operations and legislative agenda for the city of Long Beach.
The details
The city uses these programs to reimburse itself for eligible small-business loans, which range from $10,000 to several hundred thousand dollars. Business owners seeking financing can apply through the local BizCare program.
Timeline
The city began issuing loans through the programs in 2001.
The Long Beach City Council approved the grant award on June 16, 2026.
City officials announced the grant on October 12, 2026.
The deadline for expending federal grant funds is March 31, 2029.
Culture Shift
This investment highlights a move toward localizing economic recovery efforts via federal oversight of the Public Works and Economic Development Act of 1965. The initiative reflects a shift in how municipalities utilize government-backed capital to support micro-enterprises in a post-pandemic landscape.
Small business owners unable to qualify for traditional commercial bank loans may find the city's BizCare program a viable alternative for capital. Applicants should note that loan terms and interest rates are structured specifically for regional economic retention.
The takeaway
Entrepreneurs in the region should track their eligibility for city-backed loans that offer interest rate caps below standard market rates. Leveraging government-backed financing can provide a crucial buffer for small businesses operating on tight margins.
What happens next
The city must expend the entirety of the federal grant funds by the March 31, 2029 deadline.
Further reading
Learn more about local assistance programs by visiting the Long Beach Financial Aid resources page.
More information
Review eligibility requirements for the city small business program information.
Source note: This article includes information reported by Press Telegram.
Live Poll
Should local governments offer direct small-business loans to companies that cannot get bank financing?
