ATTACHMENT B
BIZUP: PALM SPRINGSPalm Springs Business Training and Access to Capital Program OverviewProgram SummaryIn 2024, the City of Palm Springs committed $1,000,000 over five years to economic development as part of its restorative justice commitment following the Section 14 settlement, naming Caravanserai - Alliance for Entrepreneurs as the delivery partner. This overview describes how Caravanserai will deliver that commitment: a five-year business training and access to capital program focused on Section 14 survivors and descendants and the broader Palm Springs small business community.The program builds directly on two completed program years funded by the City in 2024 and 2025. Those two years served 70 entrepreneurs, funded 35 businesses, created 21 new jobs, and generated $1.18 million in revenue growth, contracts, and investments captured by participants. This 5-year initiative applies the same model at full scale.Each program year, Caravanserai will train 40-50 entrepreneurs across two cohorts, award up to 40 micro-grants of $3,750, and provide unlimited one-on-one business consulting through Caravan SBDC, Caravanserai's small business development center within the larger Orange County Inland Empire SBDC Network. Through the center and its network, entrepreneurs have access to more than 150 business consultants across finance, marketing, sales, operations, and compliance, at no cost to them or to the City. Over five years, the program will train 200-250 entrepreneurs and deploy $750,000 in direct micro-grant capital into Palm Springs businesses.Program DesignThe program runs two cohorts per year of 20-25 participants each. Every cohort receives ten business group workshops and ten one-on-one coaching sessions, delivered in a hybrid format (in-person and online) and fully bilingual in English and Spanish. The curriculum covers business vision and planning, financial management, customer discovery and competitive analysis, marketing and sales, banking and financial systems, and technology and operations, tailored to the needs of each cohort.
Selection is competitive, based on the strength of each applicant's business. Priority outreach will be given to Section 14 survivors and descendants, and the program remains open to all Palm Springs entrepreneurs.After graduation, participants keep access to ongoing consulting through Caravan SBDC at no cost, for as many sessions as appropriate.Micro-Grant EligibilityGraduates who complete the training program, the required coaching sessions through Caravan SBDC, and a business plan qualify for a $3,750 micro-grant. Up to 40 grants are awarded each year, 200 over the life of the program. Before funds are disbursed, each recipient must provide:•Government-issued photo identification•Business formation and registration records (fictitious business name statement, articles of organization or incorporation, EIN confirmation, as applicable)•An active City of Palm Springs business license, along with any other licenses or permits the business requires to be in compliance•Business bank account verification (voided check, bank verification letter, or recent statement)•Evidence of active business operations (sales records, contracts, leases, payroll records, or comparable documentation)•Most recent business tax return, where applicableGrant funds may be used for business licenses and incorporation, equipment, marketing, rent, inventory, and payroll (with restrictions). Funds may not be used for taxes, bonuses, severance, personal expenses, legal settlements, expenses reimbursed by insurance, or investment purposes, including but not limited to cryptocurrency, stocks, or other speculative financial instruments. Recipients submit invoices and progress reports on the use of funds.Outreach PlanCaravanserai will promote the program through email newsletters, text message campaigns, in-person info sessions, social media, and its established relationships across the regional small
business community, including community organizations, financial institutions, and chambers of commerce. All outreach materials are bilingual in English and Spanish.Outreach for each cohort follows a phased timeline that puts the Section 14 community first. The first recruitment period opens with a 90-day priority outreach window spanning the full first program quarter, allowing multiple rounds of information sessions and sustained relationship-building with Section 14 representatives before any citywide promotion begins. Each recruitment period after the first opens with a standard 30-day priority window. During each priority window, all outreach activity is dedicated to Section 14 survivors and descendants. Applications remain open to all Palm Springs entrepreneurs throughout, and selection remains competitive. After each priority window closes, outreach expands citywide. This cycle repeats before each cohort, twice per program year, consistent with the quarterly implementation timeline below.Outreach Phase (each recruitment period)ActivitiesSection 14 priority outreach: first 90 days of the first recruitment period, first 30 days of each recruitment period thereafterAll outreach (newsletters, text campaigns, etc.) is dedicated to Section 14 survivors and descendants. Community information sessions at trusted neighborhood locations, including Ajalon Missionary Baptist Church and the James O. Jessie Desert Highland Unity Center, with Section 14 representatives invited to co-host. Application walkthrough sessions and technical support webinars for Section 14 applicants. In-person application and technical assistance at the Unity Center and the Caravanserai office.General recruitment: following each priority windowOutreach expands citywide through newsletters, text campaigns, social media, and partner organizations. Continued application walkthroughs, technical support webinars, and in-person assistance at accessible community locations and the Caravanserai office through the close of applications.
OngoingContinued engagement with Section 14 representatives between cohorts to share program updates, report outcomes, and gather community feedback. Year-round outreach partnerships with community organizations and financial institutions.Caravanserai will engage Section 14 representatives throughout the program, inviting them to raise awareness among survivors and descendants, co-host information sessions, and help keep the community informed between recruitment cycles. Caravanserai staff will walk applicants through the application and required documentation step by step, in person and online, in English and Spanish.Implementation TimelineThe timeline is organized around program quarters with Quarter 1 beginning when the first quarterly disbursement is received from the City. In Year 1, the full first quarter is dedicated to Section 14 priority outreach before citywide recruitment begins. Years 2-5 follow the same four-quarter cycle each year, aligned to the City's disbursement schedule.Program QuarterMilestonesQuarter 1 (begins upon first City disbursement)Program launch. Applications open. The full quarter (90 days) is dedicated to Section 14 priority outreach, beginning with Section 14 representatives and community partners.Quarter 2Citywide general recruitment opens and closes. Cohort 1 selected and training begins.Quarter 3Cohort 1 completes training and micro-grants are awarded to eligible graduates (up to 20). Cohort 2 recruitment begins with a 30-day Section 14 priority outreach window.Quarter 4Cohort 2 trains and completes. Micro-grants awarded (up to 20). Cohort 1 grant reporting and follow-up consulting. Year 1 evaluation and annual report to the City.
Years 2-5From Year 2 onward, each program year follows the standard four-quarter cycle: two cohorts, each recruited with a 30-day Section 14 priority outreach window, up to 40 micro-grants, and annual reporting. Outcome tracking continues for 12 months after each cohort.BudgetThe City's total investment is $1,000,000 over five years, or $200,000 per year, received in quarterly disbursements of $50,000 consistent with the City's disbursement framework. Each year, 75 percent of funds ($150,000) goes directly to entrepreneurs as micro-grants and 25 percent ($50,000) covers program delivery. Any micro-grant funds not awarded in a given program year roll forward into the following year's micro-grant pool; they are never redirected to program operations.CategoryAnnual5-Year TotalMicro-grants to entrepreneurs (75%)$150,000$750,000Program delivery (25%)$50,000$250,000Total City investment$200,000$1,000,000Caravan SBDC consulting (no cost to the City)$40,000$200,000Total program value$240,000$1,200,000Program Delivery Line Item (Annual)AmountProgram administration and personnel: operations, fiscal management, participant coordination, micro-grant distribution, and reporting to the City$30,000Consultants, trainers, and mentors$6,800Outreach and marketing$2,750Program supplies and participant support$2,250
Evaluation, monitoring, and compliance$3,650Administration and indirect costs (10%)$4,550Total program delivery$50,000Caravan SBDC added value: one-on-one consulting is provided through Caravan SBDC at no cost to participants or the City, drawing on the more than 150 business consultants available through the center and the Orange County Inland Empire SBDC Network. Participants may take as many sessions as appropriate, during the program and after it ends. The estimated value of this service is $40,000 per year, bringing the total program value to $240,000 per year and $1,200,000 over five years.Anticipated Outcomes and ReportingOver five years, the program will train 200-250 Palm Springs entrepreneurs across ten cohorts and deploy $750,000 in micro-grant capital through 200 grants of $3,750. Caravanserai tracks outcomes from the application stage through 12 months after each cohort, measuring businesses funded, businesses started, jobs created and retained, revenue growth, and additional capital secured along with other metrics.Caravanserai proposes quarterly financial and program reporting with an annual impact report, and will align the reporting schedule and format with the City's requirements. Caravanserai is independently audited each year and holds a GuideStar Platinum transparency rating, placing it in the top 1 percent of nonprofits nationally.