TITLE
Recommendation to request City Manager to direct the Economic Development Department to work with Los Angeles Local Initiatives Support Corporation and the Long Beach Community Foundation to establish Long Beach as a "Kiva City"; and
Increase appropriations in the General Fund (GF) in the Economic Development Department (ED) by $25,000, offset by the First, Fifth, Sixth and Ninth Council Districts one-time infrastructure funds transferred from the Capital Projects Fund (CP) in the Public Works Department (PW) to support the hiring of a new, temporary part-time staff member.
DISCUSSION
Long Beach is home to diverse communities and economies with more than 9,800 small businesses, employing nearly 100,000 people. Small businesses employing less than 10 employees account for 86.8% of all Long Beach businesses, excluding home-based businesses and commercial and residential property licenses. Small businesses are the backbone of our economy, creating two out of three net new jobs in the U.S. and, often employ the most vulnerable groups in the workforce. The availability of capital is crucial for small business startup, survival, and growth. Yet one of the biggest challenges facing small business owners and entrepreneurs, especially women and minority-owned businesses, is the inability to access capital.
The Problem
For many Long Beach entrepreneurs who dream of starting their own business, options for accessing capital are limited, or non-existent. They are among the vast majority of financially excluded individuals in the U.S. who are stuck in low-wage jobs and unable to launch or grow their businesses.
While large companies frequently raise capital through debt and equity markets, small businesses regularly finance their ventures with commercial bank borrowing. However, despite improving economic conditions in recent years, levels of bank lending to small businesses remains stagnant. Banks approve just two in ten small business loan requests, forcing...
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