TMC Community Capital - Small Business and Entrepreneur Support in Los Angeles

Income inequality

County of Los Angeles (select only if your project has a countywide benefit)

Expand existing project, program, or initiative (expanding and continuing ongoing, successful work)

Underserved small businesses in Los Angeles, especially those owned by women, immigrants, low-income entrepreneurs, and people of color, face systemic barriers to capital. Traditional lenders often rely on credit scores, collateral, and rigid criteria, leaving many excluded due to being credit-invisible or lacking formal documentation. Additionally, the digital divide and limited culturally relevant support further restrict access. These factors contribute to income inequality, wealth gaps, and stagnant local economies. TMC Community Capital addresses this issue by offering an equitable, community-based approach to lending that values local trust, alternative data, and cultural competence.

This grant will support the expansion of TMC Community Capital’s community-based underwriting model in Los Angeles. The program integrates qualitative data from trusted local partners to evaluate borrowers equitably, quickly, and without requiring collateral or credit scores. With a strong repayment rate (98.5%) and proven outcomes, this model enables access for overlooked entrepreneurs.
Key grant-supported activities include:
Expanding partnerships with LA-based community organizations

Delivering culturally relevant training to partner staff

Enhancing a bilingual partner portal to streamline referrals

Engaging borrowers to improve TMC’s Milestone Loan product

Conducting research and development into green microloans and equitable tech tools

The initiative aims to fund 150+ entrepreneurs with inclusive capital and technical support. These efforts will directly address financial inequity and create ripple effects in communities by improving business sustainability, job creation, and long-term economic mobility.

If successful, more than 150 diverse entrepreneurs will gain equitable access to the capital and tools needed to grow sustainable businesses. These businesses will generate jobs, increase household income, and foster community resilience. Financial empowerment among women, immigrants, and entrepreneurs of color will contribute to narrowing the racial wealth gap. A network of trained community partners will strengthen the local referral infrastructure. The impact will extend beyond individual businesses, benefiting families, employees, and neighborhoods across LA County. Over time, this inclusive model can scale, shifting systems and expanding economic opportunity countywide.