City Committee Recommends Emergency Relief Fund for Small Businesses to Council

Pasadena City Council’s Economic Development and Technology Committee unanimously recommended Tuesday that the Council enter into an agreement with the Pasadena Community Foundation (PCF), to create a “COVID-19 Emergency Relief Fund for Small Businesses.”

If agreed to by the full Council, the City would provide an initial $500,000 for grants, from its General Fund, along with an additional $250,000 for matching grant opportunities to be coordinated by PCF.

The Foundation would create a committee to review the applications and administer the funds, along with the Pasadena Chamber of Commerce.

PCF recommendations would be subject to a review from the Council, as Committee member and Councilmember Steve Madison amended the recommendation to include final council approval.

The fund would be the Foundation’s second effort in combating the Covid-19 crisis.

In March, the Foundation launched an emergency COVID-19 Response Fund, and made an initial commitment of $100,000  to provide local relief. The fund provided flexible resources to Pasadena-based organizations responding to the impact of the virus and quarantines, and allowed donors to make charitable gifts to benefit both urgent and long-term community needs.

“We are in the midst of a national emergency with significant and immediate consequences for the Pasadena community,” said Jennifer DeVoll, CEO and president of Pasadena Community Foundation, who also attended the Committee meeting.

“With the COVID-19 Response Fund, we appeal to the generous donors of Pasadena to continue to give locally in order to sustain the social services, food assistance, and other efforts that will protect our vulnerable neighbors.”

According to Dave Klug, senior project manager in the Citys’ economic development department, the City began exploring the possibility of the fund on May 21, based on a suggestion from the Foundation and the Pasadena Chamber of Commerce, to assist businesses now struggling, and who might not have received Federal assistance.

As Klug detailed, the eight-week program would involve a three-week setup process, a training period for applicants, a review process, and then the selection and distribution of grants, of up to $10,000 per business or applicant, during the eighth week.

The PFC would also reach out to individuals and businesses to make tax-deductible donations to the fund.

It is hoped, said Klug, that 50 to 100 businesses could be “helped to survive” through the crisis.

A 9-12 member committee would evaluate and score the applications. As described by Devoll, the committee members “would have significant expertise, should be locally based and be skilled in reaching out to people.”

Klug said that applicants would be required to live in Pasadena, be established at least two years, and be “in good standing with the city,” with current licenses and permits and no taxes owed. The applicants must also be locally and independently owned and not a part of a national chain or franchise.

Businesses would also have 1-20 employees, and $3 million or less in yearly gross revenue. Businesses should also have experienced at least a 25 percent drop in revenue due to the Covid 19 pandemic crisis, based on their financial records.

The applicants also may not have previously received any COVID-19 related federal assistance or loans in 2020, said Klug. The Committee recommendation will likely be heard at the City Council’s next meeting.

Meanwhile, the expected demand for outdoor dining considerations from local restaurants has not really materialized, according to a report from Laura Cornejo, the City Transportation Department manager.

According to Cornejo, the Department has only received three official applications for new outdoor dining configurations so far, after numerous rounds of emails to local establishments.

The city received an inquiry from the Playhouse Business Improvement District (BID), which had been exploring outdoor dining opportunities for some months, said Cornejo, but there was “limited interest” from Old Pasadena restaurants, and no inquiries from the Lake Avenue business district.

Representatives from the Transportation Department will be meeting with members of the Playhouse District BID to discuss more details soon, said Cornejo.

GIven the small number of inquiries, said Committee Chair Councilmember Victor Gordo, “We need to prioritize the city’s resources, and be guided by business’s needs”

Gale’s Restaurant is currently finalizing its outdoor dining tent, said City Planning Director David Reyes, who said he would visit the restaurant Wednesday.