L.A. Mayor Eric Garcetti announced on Sept. 1 a new program to provide small business owners with counseling, education and debt repayment assistance to assist their economic recovery from the pandemic.
“Small businesses account for nearly half the jobs in our city and their recovery is essential to our economy,” he said in a statement. “We recognize that small businesses are the foundation of our communities and are committed to helping them get back on their feet.”
Counseling will be provided free of charge to small businesses through a collaboration between the city’s Economic and Workforce Development Department (EWDD) and Money Management International (MMI), a nonprofit which provides consumers with credit counseling and education. The program will provide guidance, resources and assistance to small business owners to help them stabilize cash flow, decrease debt and improve credit.
“Our counselors understand the unique financial challenges faced by small business owners and can help show them how to balance their household budget, improve their credit profile and connect to vetted resources,” Jim Triggs, chief executive of MMI said in a statement. “Nonprofit financial counseling has been proven to increase financial wellness and reduce debt, so we hope local small business owners will take full advantage of this new relationship and engage with our experts.”
One of the primary goals of the new program is to close the “structural gap in available financial relief” that has disproportionately impacted women- and minority-owned businesses during the pandemic. Â
“Small businesses endured extraordinary financial hardships during the pandemic, including negative impacts to their credit and increasing their debt,” EWDD General Manager Carolyn Hull said in a statement. “The office of Mayor Garcetti and the city of L.A.’s Economic and Workforce Development Department’s collaboration with Money Management International supports local mom-and-pop shops by offering small businesses the tools to establish credit and debt management best practices. Learning these skills helps small businesses strengthen their finances and broaden their access to capital, ultimately boosting the city’s economic recovery efforts.”
The counseling program is the latest in the city’s efforts to assist small businesses during the pandemic. In the past year, the city launched the Small Business Microloan Program, the L.A. Recovery Fund and small business grants, distributing a reported $56 million in grants and loans to businesses and microentrepreneurs.Â