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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 2, 2013 <br />TITLE: <br />SANTA ANA SMALL BUSINESS <br />INCENTIVE PROGRAM <br />CITY MANAGE <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />Approve the Santa Ana Small Business Incentive Program, subject to non - substantive changes <br />approved by the City Manager and City Attorney. <br />FINANCE ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE REVIEW <br />The Finance, Economic Development, and Technology Committee by a vote of 3:0 reviewed this <br />matter at its meeting on October 14, 2013 and recommended that the City Council authorize staff <br />to administer the Santa Ana Small Business Incentive Program. <br />DISCUSSION <br />In May 2013, the City Council approved the Annual Action Plan and the City submitted the <br />document to the U.S. Department of Housing and Urban Development (HUD). The Annual <br />Action Plan is the document whereby the City formally applies to HUD for the annual federal <br />grant allocations and describes how the grants funds will be utilized. A program listed under the <br />Annual Action Plan is Economic Development Micro - Enterprise Assistance. According to CDBG <br />guidelines, a micro - enterprise is defined as a business that has five or fewer employees, one or <br />more of whom owns the business. One purpose of the Micro - Enterprise Program is to provide <br />financial assistance, technical assistance and general support services to small start -up <br />businesses in the City. Another purpose is to meet a national objective, which is to create or <br />make jobs available for low- income individuals. <br />This is the first time the City included an economic development activity in the Annual Action <br />Plan, therefore staff reviewed similar programs in other cities and interviewed their staff about <br />common practices. Staff initially modeled the creation of the $2,000 grant program and its <br />administration process after the City of Long Beach, which has successfully administered such <br />small business incentive program for more than 20 years. <br />29A -1 <br />