Brief

The Mayor's office initiated a pilot program to help small businesses access financing, supported by a donation from Banc of California. Council voted 12-0-3 on June 28, 2024, to accept the donation and deposit the funds in the Economic Development Trust Fund for program implementation. The file was referred to committee in September 2026 but the Economic Development and Jobs Committee waived consideration, leaving the matter's current operational status unclear.

Full summary

The Contract Financing Pilot Program is a capital access initiative designed to remove financial barriers for small and minority-owned businesses seeking to bid on and fulfill government contracts. Launched in 2024 with a $1 million donation from Banc of California, the program offers technical assistance and facilitates low-interest, short-term loans so businesses can mobilize after winning contracts — covering costs like materials, equipment, and hiring. The program operates as an extension of the ProcureLA initiative, a Mayor-launched effort providing free procurement education and vendor network connections. Initially, only businesses holding City of Los Angeles professional services contracts were eligible. The Community Investment Department (CID), led by General Manager Abigail Marquez, contracted with Merriwether and Williams Insurance Services (now a HUB International Company) for $426,000 to administer the program. M&W launched the application portal in October 2025 and by mid-2026 had received 58 inquiries but only 3 applications — a participation gap the department attributes to the program's narrow original scope, which limited eligibility to City contract holders only. Funding of those three eligible applications remained pending, contingent on full execution of the awarded City contracts. In September 2026, CID requested Council approval to expand the program in two significant ways: first, to extend eligibility to businesses holding contracts with any government entity, not just the City; and second, to serve businesses pursuing contracting opportunities tied to upcoming major events, specifically Super Bowl LXI and the 2028 Olympics (LA28), as long as the business operates within Los Angeles. A balance of approximately $474,000 remains from the original Banc of California donation, and CID is seeking authority to transfer those funds into the City's Economic Development Trust Fund and use them to continue operations. The department also requested approval of a new $425,000 contract with M&W for a one-year term running October 2026 through September 2027, with an option to renew for one additional year. The proposed expansion carries no cost to the City's General Fund. The original motion moved swiftly through Council in 2024: referred to the Trade, Travel, and Tourism Committee on June 14, the committee waived consideration on June 21, and the full Council voted 12-0-3 to adopt on June 28. The expansion request, submitted by CID in late August 2026 and approved by the Mayor's office before being forwarded to Council, is now pending before the Economic Development and Jobs Committee.

Activity (10)

• 2026-09-10 Economic Development and Jobs Committee waived consideration of item .
• 2026-09-08 Community Investment Department document(s) referred to Economic Development and Jobs Committee.
• 2026-09-08 Document submitted by Community Investment Department, dated September 8, 2026.
• 2024-07-08 Council action final.
• 2024-06-28 City Clerk transmitted file to Mayor. Last day for Mayor to act is July 8, 2024.
• 2024-06-28 Council adopted item forthwith.
• 2024-06-25 City Clerk scheduled item for Council on June 28, 2024.
• 2024-06-21 Public Works Committee waived consideration of item .
• 2024-06-14 Document(s) submitted by Mayor, as follows:Economic and Workforce Development Department report, dated June 12, 2024, relative to a authorizing the implementation of the Contract Financing Pilot Program, accepting a donation from Banc of California, and approving the deposit of donated funds in the Economic Development Trust Fund for implementation of the Contract Financing Pilot Program.
• 2024-06-14 Economic and Workforce Development Department document(s) referred to Trade, Travel, and Tourism Committee.

Documents (4)

• 2026-09-08 Report from Community Investment Department · report
• 2024-07-08 Mayor Concurrence/Council Action · other
• 2024-06-28 Speaker Card(s) · speaker_card
• 2024-06-12 Report from Economic and Workforce Development Department · report

Council votes (1)

• 2024-06-28 Vote — 12-0-3 · Regular