Frequently Asked Questions

Local Development Corporation

2. Where do you get funding?

We raise capital to fund our loans through borrowings from commercial banks, socially responsible investors or other national community development capital providers.

3. What are your target areas?

We target our lending and advisory services in our primary market in distressed communities and to minority and women owned enterprises operating throughout California. Recent recipients have been from the Los Angeles, Ventura, Alameda, and Orange counties.

4. What are our interest rates?

We provide capital, at market rates, to borrowers operating in distressed communities where capital is not readily available from more conventional financial services companies. Our interest rates and fees are reflective of the risks that most lenders will not take.

5. How long is the process/ How do I apply for a loan?

Our lending process is very similar to mainstream financial services companies - as any other commercial banks and finance companies - often times we can move faster than other non-bank community development capital providers.

6. Are you a city controlled entity?

No, we are a private nonprofit public beneficial entity, created by the city in 1980 but governed by an independent Board of Directors.

7. What types of loans do you provide?

We are commercial finance lender licensed by the California Department of Corporation under its commercial finance lenders laws. We offer financing to small businesses, non profit organizations and real estate developers with financing needs under $10,000,000. We have the ability to provide short-term or long term loans at both fixed and variable interest rates. We prefer to advance loans against collateral which includes but is not limited to real properties, accounts receivables, equipment and or business assets. We do not finance low income housing.

8. Do you finance startup business?

Generally, we require a minimum of 2 years of operating history or 5 years of industry experience by a borrower or principal; however, we will consider a borrower or principal with less operating history providing the principals/management have a demonstrated competency in the industry.

9. Why do investors take interest in us?

We offer double-bottom line returns to our investors and lenders. Our investment provided financial returns and social impact in the distressed communities we serve.

10. How do I apply?

You can call, fax or e-mail us your interest in an application (refer to contact information). You can also visit the pre-qualification page of this website in order to start the application process.