Loading...
HomeMy WebLinkAboutItem 21 - Santa Ana Business Interruption Fund Program Community Development Agency santa-ana.org/cd Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report March 1, 2022 TOPIC: Santa Ana Business Interruption Fund Program AGENDA TITLE: Approve the Santa Ana Business Interruption Fund program to provide financial relief to businesses impacted by the OC Streetcar Construction in the Amount of $1,500,000 (General Fund) RECOMMENDED ACTION Approve the Santa Ana Business Interruption Fund program in the amount of $1,500,000 to provide financial relief to businesses impacted by the OC Streetcar construction. DISCUSSION The Santa Ana Business Interruption Fund program provides financial assistance to small “mom and pop” businesses located along the OC Streetcar transit project that are directly impacted by transit rail construction in Downtown Santa Ana (DTSA). While the OC Streetcar is anticipated to facilitate transportation throughout the community to better connect residents and tourists to the city, the City recognizes the immediate need to assist local businesses that are currently facing economic challenges due to the construction closures on 4th Street. To help mitigate the economic challenges, eligible businesses may receive up to $10,000. To qualify, a business must rely on foot traffic flow as their main source of revenue, such as retailers, restaurants, and personal care services. The financial assistance will be based on a tiered system: Tier 1 – Businesses directly adjacent to construction on 4th Street Tier 2 – Businesses with a storefront entrance within 100 feet of 4th Street within the construction zones Currently, construction is on 4th Street is occurring between Mortimer and Bush, and between Main and Broadway. As construction moves along 4th Street, additional businesses may be eligible. To facilitate the application process, staff will have a physical presence in DTSA to assist Santa Ana Business Interruption Fund Program March 1, 2022 Page 2 2 4 8 0 business owners with completing the application. Outreach efforts will include door-to- door marketing and direct communication with the impacted businesses. Additionally, business owners will be provided with resources, such as access to free training and consulting services, to stabilize and strengthen their business as needed. The Santa Ana Business Interruption Fund program, along with other mitigating measures already put in place by the City and Orange County Transportation Authority (such as temporary free parking, improved signage, and augmented security), are intended to minimize the negative economic impacts to the businesses and local residents that are employed by those businesses. FISCAL IMPACT Funds in the amount of $1,500,000 are available in the Economic Development Service Enhancement Loans and Grants account (no. 01118810-69152). EXHIBIT(S) 1. Program Guidelines Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City of Santa Ana Page 1 of 3 Santa Ana Business Interruption Fund Santa Ana Business Interruption Fund Program Guidelines I. Purpose A. The Santa Ana Business Interruption Fund (SABIF) program provides financial assistance to small “mom and pop” businesses located along the OC Streetcar transit project that are impacted by transit rail construction. SABIF is a demonstration of the City of Santa Ana’s commitment to being a trusted partner and stakeholder. II. Grant Amount A.The City of Santa Ana has designated $1,500,000 to be used for implementation of the SABIF B.The grant amount will be limited to 50% of rent/lease for 6 months, not to exceed $10,000 per business i. Exception: Pre-permitted Pushcart Peddlers with active permits are eligible for $2,500 C.Funds may be used for the following business expenses: i. Rent, utilities, payroll, business license fees, marketing, and other operating expense III. Eligibility A.Business that rely on foot traffic flow as their main source of revenue such as retailers, restaurants, and personal care services B.Businesses owners may apply if they are directly impacted by the OC Streetcar construction on 4th Street or have a storefront entrance within 100 feet of 4th Street within the construction zones C.Small business for the purposes of the SABIF are defined as a for-profit business with 25 or fewer full-time employees D.Businesses must be in good standing with all local, state and federal taxing and licensing authorities E.Must have no active code violations IV. Funding Priority A.Tier 1 – Eligible businesses directly adjacent to construction on 4th Street B.Tier 2 – Eligible businesses must have a storefront entrance within 100 feet of 4th Street within the construction zones i.Must be within active construction zones within the same block EXHIBIT 1 Exhibit 1 City of Santa Ana Page 2 of 3 Santa Ana Business Interruption Fund V. Active Construction Area Map A. 4th Street between Mortimer & Bush B. 4th Street between Main & Broadway C. As construction moves along 4th Street, additional businesses may be eligible. VI. Ineligible A. Residential property owners, commercial rentals, home based businesses and independent contractors, wholesale, manufacturing, nonprofits, financial institutions, and internet sales B. Businesses with active code violations C. Cannabis-related businesses, gambling facilities, adult entertainment businesses D. Businesses outside of the active construction areas (refer to “Active Construction Area Map” VII. How to Apply A. Visit the City of Santa Ana website: TBD B. Complete and submit the online application C. Collect and submit the required documents VIII. Documentation Required A. Applicants must provide the following documents (current/active/valid documents required): i. Business License ii. Certificate of Occupancy (if required by Planning & Building Agency) iii. Statement showing planned use of funds EXHIBIT 1 Exhibit 1 City of Santa Ana Page 3 of 3 Santa Ana Business Interruption Fund IX. Disbursement of Funds: A. Small business that are approved must be able to receive funds directly deposited to a checking or savings account B. Applicants will be required to submit the following forms that will be provided by the City: i. Vendor I nformation Form ii. Automated Clearing House (ACH) Form iii. W-9 IRS Form X. Reporting Guidelines: A. Businesses will be required to report how the funds were spent as requested by the City of Santa Ana XI. Business Resources A. The Orange County Small Business Development Center offers free consulting services to businesses. As part of this program, applicants are strongly encouraged to connect with the OC SBDC prior to expending program funds to ensure proper tracking of expenditures. i. https://ociesmallbusiness.org/orange-county ii. 800-616-7232 XII. Contact/Questions A. Businesses interested in individualized assistance may schedule an appointment with City staff B. City of Santa Ana Julie Castro, Economic Development Specialist II (714) 673-3619 Jcastro-cardenas@santa-ana.org EXHIBIT 1