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CC- ACTION ITEM: Discussion and Direction Regarding Pilot Micro-Grant/Small Business Assistance Programs.
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Meeting Date: May 12, 2025
Contact Person/Dept: Elizabeth Garcia/ Economic and Cultural Development Department
Phone Number: (310) 253-5708
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/07/2025)
Department Approval: Michael Bruckner, Assistant City Manager (04/25/2025)
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RECOMMENDATION
Staff recommends the City Council discuss pilot micro-grant small business assistance programs, and direct the City Manager as deemed appropriate.
BACKGROUND
In September 2024, City Council requested staff gather information relative to a pilot micro-grant/small business assistance program similar to the current Sustainable Business Certification Program. The Sustainable Business Certification Program conducts a sustainability assessment of participating businesses and provides an action plan that promotes sustainability and increases operational efficiency.
In considering direct assistance options, staff reviewed a compilation of former Redevelopment Agency programs, as well as precedent examples from other cities as reference in considering a potential small business assistance program.
Former Redevelopment Agency Programs
All these programs were funded using redevelopment funds, which are no longer available. Future programs would need to be funded through the City’s General Fund.
1. Commercial Façade Rehabilitation Grant Program
The Commercial Façade Rehabilitation Grant Program provided funding to businesses and property owners to assist with building façade improvements to enhance select commercial corridors within the Redevelopment Areas. Different commercial corridors were selected to enhance other investments such as the West Washington Area Improvement Program (AIP) streetscape improvements. The program required design approval by the Agency, and funds were provided on a reimbursable basis.
2. Tax Rebate Program
The Tax Rebate Program authorized reimbursement of either a new businesses’ business license fee or utility users’ tax, up to a maximum of 50% of the new sales tax generated by that business, for a period of two years. The goal of the program was to incentivize start-up/relocation by offering short term rebates.
Eligible businesses were limited to small businesses with gross receipts of less than $5 million a year, according to the SBA guidelines at the time. The program was also targeted to restaurants and small specialty retail sectors. On average, about 15 rebates of approximately $15,000 were awarded in a single fiscal year, for a total of $225,000 per year.
3. Sidewalk Outdoor Dining Reimbursement Program
The Sidewalk Outdoor Dining Reimbursement Program funded outdoor dining fees to encourage sidewalk activation. Restaurants located within the Redevelopment Project Area were eligible to participate annually, on a first-come-first-serve basis until program funds were depleted.
4. Permit Fee Reimbursement Program
The Permit Fee Reimbursement Program reimbursed businesses for permit fees paid to the City up to $15,000, provided on a first come, first serve basis, with priority given the following uses: food service, pedestrian-oriented retail, and creative uses.
Precedent Programs
Staff identified two cities in California that currently offer small business grant programs to expand business capacity and provide technical assistance or reimbursable grants to assist with permits, services, or improvements.
City of Long Beach
The Level Up Long Beach grant program assists small businesses via a series of workshops aimed at providing businesses strategies relative to business planning, financials, and marketing. Upon completion of the workshops, participants become eligible for a $10,000 grant to enhance their business resiliency. Businesses are required to implement some of the strategies learned during the workshop series. Eligible businesses must be located within the City of Long Beach for a minimum of three years with revenues not exceeding $5 million in annual gross revenue to participate in the program.
City and County of San Francisco
The City/ County has two grant programs for small businesses:
1. San Francisco (SF) Shines Storefront Improvement Program
The SF Shines Storefront Improvement Program provides up to $10,000 for professional design services, equipment, furniture, and construction materials. Eligible business must have storefront businesses and be in commercial corridors outlined by the City Council. Participants must submit invoices for completed services/ materials for reimbursement for up to $10,000.
2. Accessibility Grant Program
The Accessibility Grant Program provides up to $10,000 to enhance ADA compliance for eligible businesses. Grant funds can be used to purchase and install accessible equipment and fixtures, as well as fund design and permit fees. Businesses must have physical location with an average employee count of 100 or less, be a place of public accommodation, and generate less than $2.5 million in gross revenue for a single location.
Culver City’s Current Small Business Technical Assistance and Partnerships
Over the last several years, staff has provided informational resources to benefit the City’s small business community via partnerships with the Small Business Administration (SBA), West Los Angeles Worksource Center, the Small Business Development Center (SBDC) and the California Governor’s Office of Business and Economic Development (Go-Biz). These have included technical workshops and job fairs.
Most recently, staff partnered with the SBDC in Spring 2024 to organize a social media marketing webinar and is currently planning an upcoming emergency resiliency training with the State of California Outsmart Program slated for May 6, 2025. The City has also worked closely with the Small Business Development Center (SBDC) to connect individual businesses when they need financial or operational assistance.
The SBDC recently partnered with the City of Lancaster to establish a program called the Entrepreneurs Start Up Series and Pitch Competition. This program focuses on supporting aspiring entrepreneurs with tools to succeed in today’s business climate. Selected participants complete courses, pitch business ideas to a panel of experts (investors, SBDC representative, amongst others) and, if selected, received a $5,000 grant towards their business. Requirements for this program include completing a minimum number of courses through the SBDC, be a locally owned independent business, have been in business for less than two years, and currently earning less than $25,000 in annual revenue.
DISCUSSION
On April 11th, the Economic Development Subcommittee discussed two potential micro-grant programs the City could consider to support small businesses.
1. Small Business Technical Assistance and Grant - Partnership with SBDC
At the City’s request, the SDBC developed a cohort-based business assistance program proposal (Attachment 1) that would include the following:
• Cohort program and management that would allow up to 30 businesses to participate per year.
• Entrepreneur workshops over the course of four months focusing on financial fitness, AI marketing, supplier development and preparation for major regional events (i.e. Olympics), and other topics available to participants online.
• One on one advising and assistance with up to four hours per business.
At the end of the program the City would have a culmination ceremony and provide a small grant upon completion
Eligibility criteria could be similar to the program in Lancaster which requires participants to operate a locally owned, for-profit business that has been business for less than 2 years.
Based on proposal provided by the SBDC, below is an estimate for this program:
SDBC Management Fees: $15,000 annually for two years
Potential Grant Amount: Up to $30,000 per year*
Total Estimated: $45,000 per year
*Grant amount is to be dependent on number of participating businesses.
2. Permit Fee Reimbursement Program
Culver City businesses have indicated that the rising costs create both a barrier to entry and expansion of existing businesses. The City’s ability to provide a potential micro-grant program could provide a bridge to attract and retain businesses in Culver City.
A permit fee reimbursement program can assist small businesses with initial permitting required to open or expand their business in Culver City.
The program could reimburse up to $5,000 of City permit fees, for up to 10 businesses. Eligibility requirements for this program would focus on brick and mortar and/or independent small businesses. The estimated costs for this program would be dependent on a maximum number of participating businesses.
The Economic Development Subcommittee recommends that the City Council consider both small business assistance programs to support the retention and attraction of small businesses.
FISCAL ANALYSIS
If the City Council wishes to proceed with a small business assistance pilot program, funding would need to be allocated in the forthcoming Fiscal Year 2025-2026 budget. The Small Business Technical Assistance and Grant Program would require $45,000 per year and the Permit Fee Reimbursement Program would require $50,000 (for 10 businesses with a grant of up to $5,000 each). If Council wishes to consider both programs the total allocation would be $95,000 per year. Funding would come from the City’s General Fund which is currently operating at a structural deficit.
ATTACHMENTS
1. SBDC Proposal
MOTIONS
That the City Council:
1. Discuss and provide direction on two pilot small business assistance programs; and,
2. Provide other to the City Manager as deemed appropriate.