City To Offer Grants for Local Micro-Enterprises

The City Council’s Economic Development and Technology (EDTECH) Committee on Tuesday will hear details of a microgrant program that could aid some but not all local businesses.

The program will have $425,000 to provide funds not to exceed $7,500 to each qualifying micro-enterprise needing help in overcoming the temporary loss of revenue due to the pandemic. 

It is anticipated that approximately 50 to 55 micro-enterprises will be assisted through the program. 

The meeting begins at 4 p.m. and can be viewed at http://pasadena.qranicus.com!mediaplaver.php?camera id=2&publish id=9. 

Grant funds may be used for reimbursement of day-to-day business operating expenses such as payroll, rent or lease payments, mortgage payments, utility expenses, inventory purchases, personal protection equipment (PPE) purchases, or other similar expenses that occur in the ordinary course of operations. 

Businesses that are not eligible include nonprofit organizations, payday loan businesses, liquor and tobacco stores, pawnshops, dealers of firearms or other weapons, life insurance companies, adult entertainment companies, passive real estate investments, home-based businesses, and national or regional chains. Businesses currently in bankruptcy are also ineligible. 

“The COVID-19-related health restrictions continue to have significant impacts on the economy with storefront retail and restaurant establishments having been particularly hit hard,” according to a city staff report. 

On July 20, the council authorized City Manager Steve Mermell to execute the city’s Five-Year Consolidation Plan (2020-2024) and the Annual Action Plan (2020-2021) related to federal Community Development Block Grant (CDBG) funding, according to a city staff report. Part of that action included approval of a second local business grant program which will be aimed at benefiting micro businesses. The grant program was allocated $425,000 for grant funds and administration.

“Although Federal and State economic recovery plans have included support for the business community and employees, the lasting impacts of the virus will be severe,” the report states. 

Eligible businesses must operate out of a street-level storefront in Pasadena and be legally operating under all local, state, and federal laws. They must also be current on any and all taxes, fees, and licensing expenses owed to the city, and not have a current lawsuit pending against the city of Pasadena.

Businesses must have experienced economic hardship due to the COVID-19 pandemic and demonstrate an at least 25 percent decline in revenues due to COVID-19 between Jan. 1 and April 30. 

Eligible businesses must have a current city business license and be a for-profit micro-enterprise (five or fewer employees, including the owner). The applicant must also be a 51 percent majority owner of a business and not have received any funds from the city’s Small Business Disaster Relief Fund.

The applicant also must not have received more than $25,000 from either the Small Business Administration’s (SBA), Paycheck Protection Program (PPP), or the SBA Economic Injury Disaster Loan (EIDL), or other SBA or other government grant sources related to COVID-19. They must also demonstrate a stable track record of business operations under current ownership and provide the dedication and wherewithal to remain open for a period of 12 months after receipt of the relief funds.