Walk around any Los Angeles neighborhood—from South Central’s coworking hubs to the creative corners of Highland Park—and you’ll feel it: the city’s entrepreneurial pulse. But here’s the real talk—starting a business in LA isn’t just about hustle; it’s about funding. And in a post-2024 economy, local entrepreneurs are finally seeing a wave of new grants, microloans, and equity-free capital designed to help small businesses not just survive, but scale.
A New Era of Local Funding
California learned a big lesson from the pandemic and 2024 layoffs—local economies thrive when small businesses do. The result? A major shift in how the state, counties, and private partners distribute money.
The Governor’s Office of Business and Economic Development (GO-Biz) now runs more than 20 active programs targeting microbusinesses, women- and minority-owned startups, and green innovators. Add to that city-level funds like the LA Small Business Emergency Grant, and you’ve got a financial ecosystem that’s finally meeting entrepreneurs where they are.
“Traditional venture capital used to ignore neighborhood founders,” says LA-based business consultant Riya Banerjee. “Now, city grants and community funds are bridging that gap—and fast.”
City of Los Angeles Small Business Assistance Program
This city-run initiative provides up to $15,000 in grants for qualifying small businesses within city limits. Priority is given to those in underserved neighborhoods or industries hit hardest by recent economic shifts (retail, hospitality, and personal care).
The program—administered through the LA Economic and Workforce Development Department—also connects recipients with one-on-one advisors for business planning and licensing support.
Applications typically open twice a year, and the process is refreshingly straightforward compared to traditional financing.
California Dream Fund
Funded by the California Office of the Small Business Advocate (CalOSBA), the California Dream Fund offers $5,000–$10,000 microgrants to early-stage entrepreneurs who complete a required training program.
Participants must go through a business training curriculum at one of the local Small Business Development Centers (SBDCs), such as Pacific Coast Regional SBDC or Vernon-Central/LATTC SBDC.
This program has been a lifeline for new founders who need that first small injection of capital to register their LLC, launch an e-commerce site, or buy initial inventory.
Founders First CDC’s “Kitty Fund” and BIPOC Accelerator
Not every great idea needs a million-dollar VC check. Founders First CDC, a national nonprofit with a strong LA presence, runs the Kitty Fund—providing $1,000–$2,500 grants to women, BIPOC, and veteran-owned small businesses.
Their CA BIPOC Business Accelerator also offers technical training, mentorship, and growth funding of up to $10,000. It’s not just cash—it’s access, connections, and real business coaching.
Entrepreneurs can check eligibility at foundersfirstcdc.org.
LA County Economic Opportunity Grant (EOG)
This one made headlines in 2025. The LA County Department of Economic Opportunity rolled out the EOG Program—a multi-phase initiative offering $2,500–$25,000 grants to small businesses and nonprofits that can prove pandemic-era or inflation-related hardship.
What’s unique is its inclusivity: even home-based businesses and street vendors qualify, provided they meet basic licensing and revenue criteria.
Applications are hosted via grants.lacounty.gov, and business owners can get free help applying through the county’s BusinessSource Centers.
The Clean Energy Small Business Grant
California’s clean-energy revolution isn’t just about Tesla and solar farms—it’s filtering down to neighborhood innovators. Through the California Energy Commission, small businesses developing sustainable tech, EV services, or energy-efficient products can access grants between $25,000 and $150,000.
Recent recipients include a downtown LA startup producing compostable packaging for restaurants and a Long Beach repair shop installing EV chargers for rideshare fleets.
The goal is to merge sustainability with small business growth—turning “green jobs” into “green income.”
Amber Grant for Women Entrepreneurs
Run by WomensNet, the Amber Grant is open to all female founders in the U.S., but it’s especially popular among LA’s creative entrepreneurs—from fashion designers to food truck owners.
Each month, one woman wins $10,000, with an additional $25,000 annual prize awarded to one standout recipient. The application is simple and story-driven, favoring authenticity over business jargon.
It’s one of the few national grants that consistently supports women-led businesses at the local level without requiring complex documentation.
Apply at ambergrantsforwomen.com.
Community Development Financial Institutions (CDFIs)
If you can’t get a traditional bank loan, local CDFIs—like Pacific Community Ventures, LISC LA, and CDC Small Business Finance—offer flexible funding and mentorship tailored to small, community-driven ventures.
They’re not grants, but their microloans ($5,000–$50,000) often come with forgiving terms and built-in support. Many LA entrepreneurs start here before scaling to larger financing rounds.
Table: Key Grants and Funding Opportunities for LA Entrepreneurs
| Program | Type | Amount Range | Focus Area | Where to Apply |
|---|---|---|---|---|
| LA Small Business Assistance Program | Grant | Up to $15,000 | Local small business recovery | ewddlacity.com |
| California Dream Fund | Grant | $5,000–$10,000 | New entrepreneurs | calosba.ca.gov |
| Founders First “Kitty Fund” | Grant | $1,000–$2,500 | BIPOC, Women, Veterans | foundersfirstcdc.org |
| LA County EOG | Grant | $2,500–$25,000 | Pandemic/inflation relief | grants.lacounty.gov |
| Clean Energy Small Business Grant | Grant | $25,000–$150,000 | Sustainability, Green Tech | energy.ca.gov |
| Amber Grant | Grant | $10,000–$25,000 | Women-led businesses | ambergrantsforwomen.com |
| CDFIs (various) | Microloan | $5,000–$50,000 | Community businesses | Local CDFI networks |
The Bigger Shift: Equity-Free Capital Over VC
Here’s the quiet revolution happening in LA’s startup culture: founders are ditching the obsession with venture capital. Instead, they’re chasing equity-free funding, where you don’t give up ownership for early-stage cash.
Why? After 2024’s investment pullback, VCs became pickier and more conservative. Meanwhile, government grants, pitch competitions, and nonprofit funds stepped in to fill the void—especially for founders historically overlooked by the venture ecosystem.
Programs like SoGal Foundation’s Black Founder Startup Grant and Hello Alice’s Small Business Growth Fund are making LA’s business ecosystem feel more democratic and less gatekept.
FAQs:
Who qualifies for small business grants in Los Angeles?
Most require your business to be registered, operating within LA County, and meet annual revenue limits (usually under $1 million).
Do I have to repay these grants?
No. Grants are equity-free and non-repayable—but funds must be used for approved business expenses.
How can I improve my chances of getting funded?
Have a clear business plan, demonstrate community impact, and apply early. Many programs run on limited cycles.
