The City of Hawthorne is offering commercial and industrial business owners a low cost alternative for filling the gap in financing packages. The primary purpose of the City of Hawthorne Business Assistance program is the creation/retention of permanent jobs that are available to and/or filled by low and moderate income people. The City's intent is to supplement prime lender loans in an attempt to facilitate projects which may not otherwise be able to obtain the necessary private lender funds. The Hawthorne Business Assistance Program is one of true public/private partnership.

The Business Assistance Program is administered by the City of Hawthorne Economic Development Committee.

Revolving Loan Program:
Loans up to 75% of eligible project costs, generally not to exceed a threshold of $10,000 per low/moderate income job created and/or retained. At least 25% of the project cost is funded privately, either through a private lender, another public lender, or equity. The minimum loan is $20,000.

Interest rates are fixed at 4% for the first 5 year period, with terms to match the security or collateral. The maximum term is 20 years.

Eligible Uses of Loan:
Loan proceeds may be used for fixed assets whose useful life is 5 years or more, including:

• Acquisition of land and buildings
• Construction, expansion, modernization and renovations
• Leasehold improvements
• Acquisition of machinery and equipment
• Acquisition of an existing business
• Related professional fees for services, such as appraisals, surveying, accounting, engineering and architectural services
• Relocation costs as per the Uniform Relocation Assistance Act
• Trucks, vans, and automobiles

Loan Application Process:
Applications are available at the City of Hawthorne Department of Planning and Community Development. A completion checklist is provided along with the application and should be used to assure that the submission is complete. Completed applications are submitted to the Department of Planning and Community Development.

The application will be reviewed by the Loan Review Committee, a subcommittee of the Economic Development Committee. The Loan Review Committee will perform credit and financial analyses of the loan request to determine the feasibility and merit of the project and the ability of the project to repay the loan. The Loan Review Committee will refer completed applications to the full Economic Development Committee for review and action.

The entire process could take as little as 2 weeks.

Business Assistance Program participation is based on the availability of funds at the time of project approval.

Other Business Assistance:
In addition to low cost financing, the City of Hawthorne Economic Development Committee can assist with other general business information. Site selection, access to local, County and State Programs, tax information, building code and zoning information, demographic information, and business licensing information are all available through the City of Hawthorne Economic Development Committee.

The City of Hawthorne also offers financial assistance in the form of grants and loans for facade improvements to buildings located on Hawthorne Boulevard. Further information on the Commercial Rehabilitation Program can be obtained from the Hawthorne Department of Planning and Community Development.

Phone: (310) 349-2970
FAX: (310) 644-6685
Email