Los Angeles Expands Contract Financing Program to Boost Small Business Participation

On October 1, 2026, Los Angeles Mayor Karen Bass announced a significant expansion of the city’s Contract Financing Program designed to assist small businesses in navigating the financial hurdles associated with government contracting. The expansion is particularly timely as businesses gear up for the 2028 Olympic and Paralympic Games, which are expected to inject approximately $40 billion into the local economy. This initiative, backed by a $1 million investment from Banc of California, aims to alleviate the upfront costs often associated with government contracts, a barrier that has traditionally hindered small businesses from competing effectively in the procurement process.

The newly expanded eligibility criteria now allow local businesses to seek financing not only for City of Los Angeles contracts but also for agreements with any government entity, as well as contracts related to significant upcoming sports and entertainment events in Los Angeles County. This broader scope is expected to open up numerous opportunities for local vendors, enhancing the overall economic landscape as Los Angeles prepares for one of the world’s most watched sporting events. Mayor Bass emphasized the importance of this initiative, stating, "With the 2028 Games expected to bring $40 billion in economic opportunity to Los Angeles, we’re ensuring our small businesses win big on the world stage."

Historically, small businesses have faced substantial challenges due to the lack of access to upfront capital needed to fulfill government contracts. The Contract Financing Program, originally launched in 2024, was crafted to provide these businesses with competitive loans that enable them to secure essential materials and resources for contractual obligations. Jared Wolff, Chairman and CEO of Banc of California, reinforced this sentiment, stating, "Small businesses should not miss out on major economic opportunities because they lack the upfront capital to fulfill a contract."

Additionally, the city has a track record of successful supplier access initiatives through ProcureLA, which has helped local businesses secure more than $45 million to date. This wealth of experience lays a solid groundwork as the expanded financing program enters the marketplace. At the third annual Sports and Entertainment Procurement Summit, where the announcement was made, key procurement leaders shared insights on how local businesses can engage with both public and private sector opportunities.

The overall goal of these initiatives is to foster an inclusive economic environment that empowers local businesses, enabling them to thrive during a time of unprecedented growth and visibility. The upcoming Olympic and Paralympic Games represent not just a sporting event, but also a critical juncture for economic development and community engagement. By prioritizing procurement opportunities for small and diverse businesses, Los Angeles is taking meaningful steps toward building a robust and resilient local economy in the lead-up to this global spectacle.

In summary, the expansion of the Contract Financing Program is a proactive step by Mayor Bass to ensure that diverse local businesses can capitalize on the economic boom expected from the Olympics. It also aligns with broader efforts to make City Hall an advocate for business, reinforcing the message that inclusive economic development is a priority for the administration.

• The expanded Contract Financing Program now serves contracts from any government entity, enhancing business opportunities.
• Banc of California has committed $1 million to support the financing initiative.
• The program specifically aims to assist local businesses involved in preparation for the 2028 Olympics and related events.
• To date, local businesses have secured over $45 million through the existing ProcureLA initiatives.
• The Sports and Entertainment Procurement Summit hosted over 2,000 registered participants, providing valuable networking and resource access.
• Mayor Bass’s administration has created a platform focused on empowering small businesses before the LA28 Games.
• Jerry Wolff of Banc of California emphasized capital access as crucial for small business success in government contracting.