75B - PH - CDBG PROGRAM 13-14 - Laserfiche WebLink

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III. PROGRAMIPROJECT DESCRIPTION-DETAIL In the space below, describe the program/project. Include information as to how the program/project will benefit iow-income peopieinousenoias. (max. cnar. /-uuu) Small businesses are the backbone of any municipal economy. Santa Ana is no different. With so many small businesses starting and failing in the City, a business start up grant might be the kick-start the business needs to be successful. The City of Santa Ana is proposing to fund start-up costs of $2,000 for 142 new businesses in the City. This reimbursement grant would be for business expenses incurred within their first year of operation. Expenses such as rent, insurance costs, utility connections, and advertising could be reimbursed to businesses under this program. The City would also work in partnership with the Small Business Administration (SBA) and Orange County Small Business Development Center (SBDC) to ensure each qualified business will be required to take a business development training workshop in areas such as Business Plan Assistance, Access to Capital and Profit Sustainability. It will be expected that if successful, the 142 businesses receiving the grant will hire at least 1-2 employees for their new location. This will help employ 142-250 Santa Ana residents. Several criteria such as hiring low income individuals, being located in CDBG eligible areas, having a business plan and city license, and having a physical street address will be requirements of the program. Grants will be disseminated to businesses on a first come/first serve basis. Marketing pieces will include information on the City website, and pamphlets and flyers on the program. IV. STATEMENT OF NEED In the space below, describe why this program/project is needed. Include information as to any effects if CDBG tunas are not awaroea ana wneiner similar programsipro)ects are available in tree community. (max. cnar. 20U New business owners in Santa Ana many times do not have the personal assets to infuse into their entrepreneurial venture. This leaves them with two options for financing their start up business costs - a loan that must be paid back or a start-up grant which does not, By offering start-up businesses grant money and requiring them to submit a business plan and attend a business development training course, that business is already ahead in the game. A start-up business with a business plan is more likely to succeed in today's local economy. This grant program is giving 142 businesses the opportunity to work closely with the City of Santa Ana to help them better understand the business programs and services available to them. In the process, they will learn about the City's Enterprise Zone hiring credit, the WORK Center, and work with one of the City's partners, the Small Business Administration, SCORE, and the Small Business Development Center (SBDC) in creating a business plan and learning about other ways to successfully grow and mature their new business. There are no other programs available that offer this grant to small businesses in the City. This program will give the City concrete measurable results in determining new job growth. 3 75B-22