Motion Would Provide Loans to Taxi Owners

Los Angeles City Councilman Richard Alarcón looks to start a low-interest loan program for taxi cab owners and operators looking to invest in environmentally-friendly vehicles. A motion introduced by the Valley lawmaker instructs city staff to report to the Jobs and Business Development Committee with recommendations on the establishment of such a program and on additional incentives to encourage taxi drivers to purchase hybrids and other environmentally-friendly vehicles. The motion comes in the midst of a debate currently taking place at the City Council committee level regarding the renewal of its taxi cab franchise agreement, which is set to expire in December. With the renewal, the city would require new green standards of the taxi cabs. “Creating a small business loan program for taxi owner-operators is a smart investment for the City, helping expedite the transition to a ‘green’ fleet rather than forcing drivers out of business because they cannot afford required upgrades,” Alarcón said. There are currently 2,353 taxis currently operating within the city for up to 14 hours per day with drivers’ wages generally ranging between $8 and $14 an hour, the councilman reported in the motion. The program would utilize funds from the $15 million loan program that was approved by the city to help small businesses that demonstrate they will create jobs. The loan program is being administered by the Valley Economic Development Corporation. Jessica Vernabe