Business Agenda Item 5b
STAFF REPORT
Business Agenda Item
DATE: September 8, 2026
TO: Honorable Mayor and Council Members
FROM: Katey Schmidt, Senior Planner
THROUGH: Aaron Felmlee, Acting City Manager
SUBJECT: Authorization to Submit a Proposal to Establish a NorCal SBDC Neighborhood Branch Serving Fortuna and the Greater Eel River Valley STAFF RECOMMENDATION:
Authorize staff to submit a proposal to the Northern California Small Business Development Center (NorCal SBDC) seeking designation of the City of Fortuna as a host organization for an SBDC Neighborhood Branch serving Fortuna and the greater Eel River Valley. If selected, staff will return to the City Council with the proposed agreement, service level, funding strategy, and any required supplemental budget request before the City commits funds or enters into an agreement.
EXECUTIVE SUMMARY:
The Northern California Small Business Development Center (NorCal SBDC) has issued a Request for Proposals for local organizations interested in hosting SBDC Neighborhood Branches.
The branch model creates a local access point where entrepreneurs, start-ups, and existing businesses can receive no-cost in person technical assistance, training, and support with business planning, financing, marketing, permitting, operations, loan readiness, and capital access from SBDC advisors. A branch at Fortuna City Hall would make these services more visible and accessible to businesses in Fortuna and the greater Eel River Valley.
Small businesses are central to Fortuna’s economy by providing jobs, occupying commercial spaces, supporting the tax base, and contributing to community character. Establishing an SBDC Neighborhood Branch would expand Fortuna’s economic development efforts, demonstrate the City’s commitment to the business community, support business attraction and retention, and create a practical opportunity for Eel River Valley jurisdictions and organizations to collaborate on shared business support needs. Because the branch would serve the greater Eel River Valley, staff will also explore regional cost sharing to reflect the broader service area, strengthen the regional economy, and reduce the City’s local contribution.
City Hall has space available to support the proposed branch, including an office for advising and client meetings, as well as conference rooms for training and related activities. The City would Business Agenda Item 5b
serve only as the local host site; SBDC advisors would provide business assistance, and the Cal Poly Humboldt Sponsored Programs Foundation (CPHSPF) would handle fiscal administration and program staffing. CPHSPF serves as the official fiscal host and administrative lead for the Northern California Small Business Development Center (NorCal SBDC) network.
The solicitation offers multiple service levels. Based on Fortuna’s size, needs, and current business support capacity, staff anticipate that Level A or Level B would be most appropriate for Council consideration. Level A providesfoundational service, including small business advising and access to SBDC technical assistance resources, with an anticipated annual host contribution of $35,000.
Level B provides expanded service, in addition to on-site advising by providing six business training workshops per year, with an anticipated annual host contribution of $50,000.
If authorized, staff will submit the proposal by the September 18, 2026, deadline. NorCal SBDC expects to announce awards by November 13, 2026. If Fortuna is selected, staff will return to Council with the proposed hosting agreement, funding strategy, selected service level, and any required supplemental budget request before the City enters into an agreement or commits local funds.
STRATEGIC PLAN 2026-2036:
The proposal is consistent with the City's long-term economic development objectives in the Strategic Plan, including expanded partnerships, business retention and expansion, access to capital, and development of business support services in the Eel River Valley.
This action supports the following area(s) of your City Council’s Strategic Plan 2026-2036.
Priority 4: Economic Development to Build Fortuna's Future The proposed SBDC Neighborhood Branch advances this priority by expanding access to business assistance and strengthening regional economic development partnerships.
Priority 3: Fiscal Foundation – Revenue, Cost Accounting & Honest Commitments Supporting business growth, entrepreneurship, investment, and job creation contributes to the City's long-term goal of diversifying revenue through sustainable economic development.
Priority 4 Long-Term Direction
An SBDC Neighborhood Branch would also support the Strategic Plan’s long-term goal of developing a CDBG low-interest business assistance loan program by helping business owners prepare stronger applications through business planning, financial documentation, project readiness, and loan preparedness assistance.
Business Agenda Item 5b
FINANCIAL IMPACT:
Authorizing proposal submission has no immediate fiscal impact and does not commit the City to an agreement or expenditure. If selected, the anticipated annual City contribution would be $35,000 for Level A or $50,000 for Level B, subject to Council approval. CPHSPF would serve as fiscal host and handle budgeting, accounting, cashflow, reporting, and audits. Staff will continue to evaluate grants, sponsorships, regional partnerships, and other outside funding sources to reduce the City's local contribution and will return to Council before requesting approval of any agreement or expenditure.
ALTERNATIVE TO STAFF RECOMMENDATIONS:
The City Council may decline to authorize submission of a proposal. If the City does not pursue this opportunity, Fortuna and Eel River Valley businesses would have less direct access to coordinated SBDC advising, training, and capital access resources, and the City would forgo a near-term opportunity to expand local business support services and build regional collaboration around shared economic development needs.
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions
2. Open and Close Public Comment
3. Motion to authorize staff to submit a proposal to the Northern California Small Business Development Center seeking designation of the City of Fortuna as a Neighborhood Branch host organization serving Fortuna and the greater Eel River Valley. Roll Call vote.
ATTACHMENTS:
1. SBDC Neighborhood Branch Request for Proposals
2. Certification of Host Cash Match
3. Certification Regarding Lobbying
4. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion