HomeMy WebLinkAboutItem 21 - Santa Ana Business Interruption Fund Program Community Development Agency
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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
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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