Santa Monica City Council 16 Item for January 24, 2023
Request of Councilmember Torosis and Mayor Pro Tem Negrete Expediting an Equitable Post-Pandemic Recovery for Santa Monica’s Small Businesses As Santa Monica commercial rents have continued to appreciate, it has become increasingly difficult for small businesses to expand and thrive in our city. Moreover, the COVID-19 pandemic disproportionately impacted small women-owned businesses and businesses of color and laid bare the systemic barriers these businesses face such as lack of access to capital, displacement, discrimination and inequitable public policy. The pandemic exacerbated both the rise in commercial vacancies propelled by online retail and the shifts to online and home-based work. Now, Santa Monica businesses are reconfiguring to adapt to a changing market with new consumer demands.
As businesses move into new spaces, re-open, or renovate their facades to attract new clientele, these improvements will lead to more foot traffic. This increased consumer spending will facilitate economic recovery for Santa Monica. The City of Santa Monica should support these businesses who have historically had high barriers to accessing capital.
The establishment of a Small Business Assistance and Tenant Improvement Fund will immediately serve to fill empty storefronts within our city by providing gap financing for commercial space improvements, the Fund will support wealth generation for business owners, and potentially give lower capacity businesses access to construction management services to assist with project needs such as space planning, selecting a general contractor, and managing the buildout process. --
To this end, the City Council directs the City Manager to report back to the City Council with recommendations for a Small Business Assistance and Tenant Improvement Fund that will provide revolving loans or grants and technical assistance to highest need businesses based on recommended equity criteria.
The City Manager should identify potential funding sources including, but not limited to; City Council discretionary funds and Community Development Block Grant Funding, and the Fund should be capitalized with a minimum of $100,000. The City Manager should report back and provide the recommendations for establishment of the Fund as part of the FY 2023-24 Annual Action Plan.