Program Purpose
The Commerce Advantage Business Grants is intended to advance economic development efforts and community revitalization by providing financial assistance to eligible businesses to strengthen the local economy, assist with business retention and expansion, encourage start-up businesses and support job retention and creation. Under the Commerce Advantage Business Grants, there are two types of grants for:
Existing Commerce businesses established before January 1, 2025; and Start-up businesses established after January 1, 2025 or looking to open their business within the City of Commerce.
Program Funding & Grant Amount
Funding Source: General Fund, Project Management Fund
Program Term: Fiscal Years 2026/2027, 2027/2028, and 2028/2029 Maximum Grant Award for Existing Commerce Businesses: Grant of up to $50,000, subject to repayment if business closes within 3 years from grant issuance Number of Grants: Approximately 15 businesses, as determined by City Council Maximum Grant Award for Start-Up Businesses: Grant of up to $25,000, subject to repayment if business closes within 3 years from issuance Number of Grants: Approximately 14 businesses, as determined by City Council Applicant Cost Responsibility
If the total cost of the approved project exceeds the maximum grant award, the applicant is responsible for paying the difference. Prior to the start of construction, the applicant must provide a cashier's check for the amount exceeding the approved grant award. Construction will not begin until the required funds have been received.
Estimated Program Capacity
3-Year Program Budget: $1,393,760
Category
Amount
Program Administration
$148,990
Direct Grant Funding
$1,244,770
Program Components
Under the Commerce Advantage Business Grant Program, there are two types of grants geared towards: 1) existing Commerce businesses; and 2) start-up businesses looking to open in Commerce. See the following details:
Existing Commerce Businesses
Intent:
Grant funding will be made available to qualifying, existing Commerce businesses to assist with retaining local businesses and jobs and supporting economic growth within the City.
Grant Type:
Grants to $50,000 will be issued to qualifying businesses. If the business remains operational for 3 years after grant funding issuance, the grant does not need to be paid back to the City. If the business closes within 3 years of grant funding issuance, the grant must be paid back at a prorated rate. For example: If a business receives a $50,000 grant but closes its doors after 1.5 years of grant funding issuance, this business must pay back $25,000 of the grant. Participating business will be required to sign agreements outlining program requirements.
Business Type:
Operate a retail, restaurant or service-related business that is physically located within the City of Commerce. Exclusions apply; see ineligible businesses below.
Business Operations:
Have been operating within the City before January 1, 2025, remain in operation at the time of application, and intend to continue operating for at least 3 years from grant funding issuance.
Occupancy:
Be located in a commercial space that is either owner-occupied or renter-occupied under a valid lease agreement. If the applicant is a renter, written authorization from the property owner is required for all proposed improvements.
Max. Number of Employees:
Employ less than twenty (20) full-time equivalent (FTE) employees at the time of application.
Required Licenses:
Holds all required federal, state, and local licenses, permits, and a current City business license.
Good Standing:
Be in good standing with the City, Business owners must provide documentation such as proof of active business licensing, state registration, tax compliance, insurance coverage, lawful occupancy, no outstanding City code violations, fees, or other balances due. All submitted documentation must confirm that the business is operating in full compliance with the Commerce Municipal Code and meets all requirements for Program participation.
Priority Corridors
Priority consideration will be given to existing Commerce businesses located along Washington Boulevard or Atlantic Boulevard.
Eligible Activities for Existing Commerce Businesses
Interior Building Improvements
Plumbing improvements
Electrical improvements
Kitchen construction and improvements
Dining room improvements
Flooring replacement or installation
Interior lighting upgrades
Booths or other permanently anchored seating
Interior wall construction or improvements
Counter refurbishing
Exhaust hood installation or replacement
HVAC repair or replacement
Fixtures, shelving, display cases permanently anchored
Exterior Building Improvements
New or upgraded signs
Windows
Doors
Awnings and canopies
Exterior painting
Exterior and security lighting
Permanent patio or outdoor seating improvements
Roof repair or replacement
Façade improvements
Building Modernization and Conversion
Equipment purchases, including built-in commercial kitchen equipment, production/manufacturing equipment, commercial kitchen equipment, forklifts, and machinery Grease trap installation
Utility upgrades
Seismic retrofitting
Hazardous materials (hazmat) abatement, including asbestos and lead-based paint Inventory/Supplies
Limited to initial inventory associated with expansion or new product lines.
Accessibility Improvements
Americans with Disabilities Act (ADA) improvements, including interior and exterior accessibility upgrades necessary to comply with applicable accessibility standards.
Professional Services
Design and architectural services directly related to eligible improvement projects.
Business Licensing and Permits
Plan check fees, building permit fees, health permits, fire permits, business license fees and other associated business licensing/permitting fees.
Additional improvements that are deemed to be consistent with the intent of the program will be reviewed and approved/disapproved on a case‐by‐case basis by the City Council.
Start-Up Businesses
Intent:
Grant funding will be made available to qualifying businesses seeking to open in Commerce or who have been in business in Commerce after January 1, 2025 to encourage the creation of new businesses and job and filling existing vacancies within the City.
Grant Type:
Grants put to $25,000 will be issued to qualifying businesses. If the business remains operational for 3 years after grant funding issuance, the grant does not need to be paid back to the City. If the business closes within 3 years of grant funding issuance, the grant must be paid back at a prorated rate. For example: If a business receives a $50,000 grant but closes its doors after 1.5 years of grant funding issuance, this business must pay back $25,000 of the grant. Participating business will be required to sign agreements outlining program requirements.
Business Type:
Operate a retail, restaurant or service-related business that is physically located within the City of Commerce or is seeking to open a start-up business within the City of Commerce. Exclusions apply; see ineligible businesses below.
For purposes of this grant, start-up business is defined as a business that started operations on or after January 1, 2025, is not a subsidiary or corporate-owned franchise of a national company, and is not listed under ineligible business.
Proof of Business Location
Applicants must demonstrate that they have secured the right to occupy a commercial business location within the City of Commerce for a minimum of three years from the date of grant award. Acceptable documentation may include a fully executed commercial lease, commercial property deed, recorded grant deed, executed sublease, among others.
Business Operations:
Have been operating within the City after January 1, 2025, remain in operation at the time of application, and intend to continue operating.
Occupancy:
Be located in a commercial space that is either owner-occupied or renter-occupied under a valid lease agreement. If the applicant is a renter, written authorization from the property owner is required for all proposed improvements.
Max. Number of Employees:
Employ less than twenty (20) full-time equivalent (FTE) employees as of January 1, 2024.
Required Licenses:
Holds all required federal, state, and local licenses, permits, and a current City business license.
Good Standing:
Be in good standing with the City, Business owners must provide documentation such as proof of active business licensing, state registration, tax compliance, insurance coverage, lawful occupancy, no outstanding City code violations, fees, or other balances due. All submitted documentation must confirm that the business is operating in full compliance with the Commerce Municipal Code and meets all requirements for Program participation.
Priority Corridors
Priority consideration will be given to start-up businesses located along Washington Boulevard or Atlantic Boulevard.
Eligible Activities for Start-Up Businesses
Interior Building Improvements
Plumbing improvements
Electrical improvements
Kitchen construction and improvements
Dining room improvements
Flooring replacement or installation
Interior lighting upgrades
Booths or other permanently anchored seating
Interior wall construction or improvements
Counter refurbishing
Exhaust hood installation or replacement
HVAC repair or replacement
Fixtures, shelving, display cases permanently anchored
Exterior Building Improvements
New or upgraded signs
Windows
Doors
Awnings and canopies
Exterior painting
Exterior and security lighting
Permanent patio or outdoor seating improvements
Roof repair or replacement
Façade improvements
Building Modernization and Conversion
Equipment purchases, including built-in commercial kitchen equipment, production/manufacturing equipment, commercial kitchen equipment, forklifts, and machinery Grease trap installation
Utility upgrades
Seismic retrofitting
Hazardous materials (hazmat) abatement, including asbestos and lead-based paint Inventory/Supplies
Initial inventory associated with the start-up business that is newly opening.
Accessibility Improvements
Americans with Disabilities Act (ADA) improvements, including interior and exterior accessibility upgrades necessary to comply with applicable accessibility standards.
Professional Services
Design and architectural services directly related to eligible improvement projects.
Business Licensing and Permits
Plan check fees, building permit fees, health permits, fire permits, business license fees and other associated business licensing/permitting fees.
Additional improvements that are deemed to be consistent with the intent of the program will be reviewed and approved/disapproved on a case‐by‐case basis by the City Council.
Ineligible Businesses
The following businesses are not eligible to participate in the Commerce Advantage Business Grants:
Home-based businesses.
Passive businesses, including rental properties and businesses where the owner does not actively operate or occupy the improved property.
Nonprofit organizations.
Businesses engaged in illegal activities.
Adult-oriented businesses or businesses providing goods or services restricted to individuals over 18 years of age.
Businesses primarily engaged in religious instruction or activities.
Financial institutions and lending businesses, including banks, finance companies, and check-cashing businesses.
Businesses primarily engaged in liquor sales, cannabis or tobacco/smoke shop operations, firearm sales, bail bond services, pawnshops, or massage parlors.
Government-owned entities (except businesses owned or controlled by a Native American tribe).
Publicly traded companies, multinational corporations, and national chains that are not locally franchised.
Multi-level marketing or pyramid sales businesses.
Businesses without a bona fide ground-floor commercial storefront.
Businesses owned/operated by City employees, elected officials, and appointed officials, where participation would create a conflict of interest.
Businesses that have received other funding sources for the same eligible activities, as determined by the City.
Allowable Soft Costs (Included in the Grant Cap)
When required for an eligible exterior repair, the plan check fees and permit fees may be included and will count toward the maximum grant amount:
Note: Total project costs, including soft costs (plan checks/permits) and construction, must remain within the approved maximum grant award.
Typical Price Ranges for Eligible Repairs (Estimates)
Actual costs vary depending on the building’s condition, size, and contractor pricing.
Category
Eligible Improvement
Estimated Cost Range
Eligibility Notes
Interior Building Improvements
Plumbing improvements
$2,500 – $25,000
Permanent improvements only
Interior Building Improvements
Electrical improvements
$3,000 – $30,000
Permanent improvements only
Interior Building Improvements
Kitchen construction and improvements
$10,000 – $100,000+
Permanent improvements only
Interior Building Improvements
Major built-in kitchen equipment
$5,000 – $75,000+
Built-in equipment only; portable equipment not eligible Interior Building Improvements
Dining room improvements
$10,000 – $75,000
Permanent improvements only
Interior Building Improvements
Flooring replacement or installation
$5,000 – $30,000
Eligible
Interior Building Improvements
Interior lighting upgrades
$2,000 – $20,000
Eligible
Interior Building Improvements
Booths or permanently anchored seating
$5,000 – $40,000
Must be permanently anchored
Interior Building Improvements
Interior wall construction or improvements
$3,000 – $40,000
Eligible
Interior Building Improvements
Counter refurbishing
$3,000 – $30,000
Permanent fixture
Interior Building Improvements
ADA accessibility improvements
$5,000 – $75,000
Eligible
Interior Building Improvements
Exhaust hood installation or replacement
$10,000 – $60,000
Built-in system
Interior Building Improvements
HVAC repair or replacement
$8,000 – $50,000
Building system
Exterior Building Improvements
Wall/projecting signs
$2,000 – $20,000
Subject to City permits
Exterior Building Improvements
Windows
$3,000 – $40,000
Eligible
Exterior Building Improvements
Doors
$1,500 – $10,000
Eligible
Exterior Building Improvements
Awnings and canopies
$5,000 – $30,000
Eligible
Exterior Building Improvements
Exterior painting
$5,000 – $40,000
Eligible
Exterior Building Improvements
Exterior lighting
$2,000 – $20,000
Eligible
Exterior Building Improvements
Security lighting
$2,000 – $15,000
Eligible
Exterior Building Improvements
Permanent patio/outdoor seating improvements
$10,000 – $75,000
Permanent improvements
Exterior Building Improvements
Roof repair
$10,000 – $50,000
Eligible
Exterior Building Improvements
Roof replacement
$25,000 – $150,000+
Eligible
Building Modernization and Conversion
Grease trap installation
$10,000 – $60,000
Eligible
Building Modernization and Conversion
Utility upgrades
$5,000 – $100,000
Eligible
Building Modernization and Conversion
Seismic retrofitting
$25,000 – $500,000+
Eligible
Building Modernization and Conversion
Hazmat abatement (asbestos/lead)
$5,000 – $75,000+
If required by law/project
Accessibility Improvements
ADA accessibility improvements
$5,000 – $100,000
Eligible
Professional Services
Design and architectural services
5%–15% of construction costs (typically $2,500–$50,000) Directly related to eligible construction
Application Process
The Business Assistance Program application process consists of the following steps:
Step 1 – Preliminary Application: Interested businesses must submit a Preliminary Application to determine whether they meet the basic program eligibility requirements.
Step 2 – Eligibility Review: The Program Administrator will review the Preliminary Application to verify business eligibility and determine whether the proposed project appears to meet program requirements.
Step 3 – Invitation to Apply: Businesses that meet the preliminary eligibility requirements will be invited to submit a complete application and all required supporting documentation.
Step 4 – Complete Application Review: The Program Administrator will review the completed application and supporting documents to verify eligibility, confirm compliance with program guidelines, and determine whether the proposed improvements are eligible for funding.
Step 5 – Site Inspection: An on-site inspection will be conducted to evaluate existing conditions, discuss the proposed improvements with the business owner and property owner (if applicable), and determine project feasibility.
Step 6 – Scope of Work and Cost Estimate: Based on the site inspection, the Program Administrator will prepare a detailed scope of work for the eligible improvements. The applicant is responsible for obtaining three (3) cost estimates, if possible, for the eligible improvements and providing the Program Administrator with the cost estimates.
Step 7 – Environmental Review and Procurement: Projects will undergo all required environmental review and procurement activities, including obtaining contractor bids, before funding is approved.
Step 8 – Grant Approval: Once all program requirements have been satisfied, the Program Administrator will prepare a recommendation and present the application, cost estimates and other relevant information to City Council, for review and approval. If approved by City Council, staff will execute the required Grant Agreement(s). The Program Administrator may approve minor modifications to an approved application, but major modifications require City Council review and approval. If project costs exceed the maximum grant award, the applicant must provide the required contribution before construction begins.
Step 9 – Construction: Construction may begin only after the Grant Agreement has been fully executed, all required approvals/permits have been obtained, and the City issues written authorization to proceed.
Step 10 – Project Completion and Payment: Upon completion of the approved improvements, the Program Administrator will conduct a final inspection to verify that the work was completed in accordance with the approved scope of work before processing payment to the contractor.
Contractor Requirements
Contractors performing work under the Commerce Advantage Business Grants must meet all applicable federal, state, and local requirements. Prior to the start of construction, the selected contractor shall:
Hold a valid California contractor's license appropriate for the scope of work.
Possess a current City of Commerce business license.
Contractors shall maintain all insurance required by the City of Commerce, including Commercial General Liability, Automobile Liability, and Workers' Compensation insurance, and shall provide certificates of insurance naming the City as an Additional Insured. Insurance coverage must remain in effect for the duration of the project.
Be actively registered and in good standing with SAM.gov, obtain and maintain a valid Unique Entity Identifier (UEI), and not be suspended, debarred, or otherwise excluded from receiving federal funds.
Comply with all applicable federal labor standards, including prevailing wage requirements, if required by the project.
Obtain all required permits and inspections prior to and during construction.
Complete all work in accordance with the approved scope of work, applicable building codes, and program requirements.
Submit all required payment documentation, including invoices, and any other documentation requested by the City or Program Administrator.
The City reserves the right to reject or remove any contractor that fails to comply with program requirements or applicable laws and regulations.
Payment Process
Grant funds will be paid to the applicant in full following the execution of the Grant Agreement. The applicant must spend the grant funding within 6 months, unless additional time is granted subject to a specified timeline and deliverables. The applicant must provide documentation justifying that the grant funding was spent on the approved activities. The Program Administrator will ensure that after the approved improvements/activities have been completed, that all required inspections have been successfully completed, and that the City has verified that the work complies with the approved scope of work and program requirements.
Record Retention and Monitoring
The City and Program Administrator will maintain all required program records and monitor funded projects to ensure compliance with financial requirements. Program applicants must cooperate with any requests for documentation, inspections, or audits related to the grant-funded project.
Conflict of Interest
City employees, elected and appointed officials, the Program Administrator, and any individual involved in the administration or decision-making of the Commerce Advantage Business Grants, including any individual living in the same household as the listed employees/officials, are not eligible to receive grant assistance. Applicants must disclose any actual or potential conflicts of interest, and the City reserves the right to deny assistance if a conflict of interest is determined to exist. 2 DRAFT
CITY OF COMMERCE
COMMERCE ADVANTAGE BUSINESS GRANTS GUIDELINES