The Los Angeles County Department of Economic Opportunity, in partnership with Supervisor Holly J. Mitchell, launched the Commercial Acquisition Fund to provide capital to countywide non-profit organizations, helping acquire and revitalize commercial spaces within local communities affected by the COVID-19 pandemic.

The CAF, an integral component of the County’s Economic Mobility Initiative, will disburse $10 million in American Rescue Plan Act funds through recoverable grants ranging from $500,000 to $2,000,000.

These grants aim to assist qualifying non-profit entities, including community development corporations and community land trusts, in acquiring vacant or abandoned properties in order to revitalize commercial spaces and create opportunities for small businesses and community organizations. To see if an organization qualifies or to apply today, visit here.

“During the beginning stages of the recovery efforts from the COVID-19 pandemic, I was proud to have passed a motion to create a countywide anti-displacement program for small businesses, starting with historic Leimert Park. Today marks a $10 million expansion on that early $2 million investment in our neighborhoods and small businesses, which are the social, economic, and cultural engines of our economy,” said Los Angeles County Supervisor Holly J. Mitchell. These are the creative uses for the American Rescue Plan that the Board of Supervisors championed and that truly stabilize and empower communities who have been underinvested long before the pandemic.”

“Our new Commercial Acquisition Fund is about more than just reclaiming and revitalizing vacant properties throughout LA County,” said Kelly LoBianco, Director of the LA County Department of Economic Opportunity. “It allows the County and our nonprofit partners to purchase overlooked properties, invest in local small businesses, preserve neighborhoods, inspire wealth generation among diverse business owners, and ensure that we avoid displacement while we grow.”

“Genesis LA is proud to partner with DEO in transforming areas impacted by the pandemic and beyond into hubs of economic growth and innovations. This opportunity aligns with our philosophy to provide funding for creative community projects,” states Tom De Simone, President and CEO of Genesis LA.

Eligibility and Application Process:
Organizations seeking to participate must first apply to become designated Qualifying Acquisition Entities. To qualify as a QAE, eligible entities must satisfy the following criteria:

-Maintain active non-profit status (including community development corporations/community land trusts)

-Must be an LA County certified business, partnered with a nonprofit

-Are in good standing with governmental authorities and don’t have unresolved violations in the County’s contracting database

Once designated as a QAE, non-profit organizations can then propose projects for properties located within areas identified as highest and high-need according to the County’s COVID-19 Vulnerability and Recovery Index in the Equity Explorer Tool. The application process to become a QAE can be found here. Eligible QAEs will receive notification of their eligibility within 30 days of application submission. To learn more, interested non-profits are invited to attend the following optional online webinar and in-person training options:

-CAF Webinar
April 24 @10 a.m. to 12 p.m.
RSVP Here

-CAF In-Person Training
May 9 @10 a.m. to 12 p.m.
RSVP Here 

Property acquisition proposals will be accepted from QAEs on a first-come, first-served basis beginning in June of 2024, with all transactions needing to close by December 1, 2024. Proposals must include a financially viable plan for rehabilitation and ongoing operations. QAEs are obligated to lease available spaces to qualifying businesses and non-profits at below-market rents for a 55-year term, ensuring long-term community benefits.

DEO’s Commercial Acquisition Fund is a core component of the County’s Economic Mobility Initiative (EMI), newly launching on April 29th at the first of five Small Business Summits. The launch of EMI, an ARPA funded initiative administered in partnership with DEO’s Office of Small Business and 10+ local County community-based organizations, kicks off Small Business Month and aims to strengthen the regional economy by supporting the startup and growth of local entrepreneurs, small businesses, and nonprofits. Stay tuned for further announcements later this month.

To register to attend or learn more about the upcoming Small Business Summit series, visit here. To learn more about the County’s new Economic Mobility Initiative, visit here.