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Economic Development

Grants and Programs for Small Businesses and Organizations Located in the Promise Zone

Only open to businesses in the Promise Zone, Opportunity Zones, or LMI census tract:

Fee Payment Incentive Program

Fee Payment Incentive Program reimburses City fees paid by the business up to $10,000 with the intent of using that money to hire employees and boost sales. Reimbursement is dependent on scale of growth. 

Award Amount: Up to $10,000

SDPZ Benefit:  Eligibility; this program is only eligible for projects in a Promise Zone, Opportunity Zone or LMI census tract. 

 

Requirements:

  • Associated permits must lead to job creation, capital investment, and/or increase in local tax revenue.

  • Projects must be in the City of San Diego. Businesses located in a Promise Zone, former Enterprise Zone, or Low-Moderate Income census tract benefit from scoring criteria. Click here to access the interactive map. 

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Business Incentive Program

The Business Incentive Program (BIP) was updated in January 2024 and is intended to incentivize businesses that plan to expand in the City of San Diego (City) and invest in their local communities.    

Award Amount: Up to $100,000

Application Period: Year Round

SDPZ Benefit: Eligibility; this program is only eligible for projects in a Promise Zone, Opportunity Zone or LMI census tract. 

 

Requirements: 

  • Business must be located within the City of San Diego. 

  • Business must 1) create or retain a minimum of 1-5 qualifying jobs or 3) make a minimum $150K-$1M capital investment. Minimum qualifying jobs/capital investment is determined based on business size and business location.

  • Award amount is dependent upon how many economic development strategies (1-3) are implemented. 

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Capacity Building Grant Program

The Economic Development Department administers Capacity Building Grants to nonprofit organizations that directly support small businesses within the San Diego Promise Zone, Opportunity Zones, and/or otherwise under-resourced communities. Applicants must clearly demonstrate how their organization and project support small businesses. Funding is allocated through the Small Business Enhancement Program. 

Award Amount: $10,000-$30,000

Application Period: Application opens late August, closes early September

SDPZ Benefit: Eligibility; this program is only eligible for projects in a Promise Zone, Opportunity Zone or LMI census tract. 

 

Requirements:

  • Capacity building expenses may include but are not limited to providing technical assistance to businesses, building a website, hanging banners, programming special events, or creating/updating business directories. Only non-personnel expenses qualify for this program. Upon a completed agreement, funds are advanced to the organization. The recipient is required to reconcile expenses on a quarterly basis and report on project progress. Project term is within the fiscal year, and BIDs are ineligible for this opportunity. 

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Provide bonus points or increased benefits to businesses in the Promise Zone, Opportunity Zones, or LMI census tract: 

Storefront Improvement Program

The Storefront Improvement Program (SIP) revitalizes building facades visible to customers, neighboring merchants and residents. The City of San Diego provides free professional design assistance and financial incentives to small business owners who wish to make a creative change to and improve the curb appeal of their storefronts.  

Award Amount: 50% up to $8,000, 67% up to $12,000 for Historical Restoration, 50% up to $16,000 for Multi-Tenant Commercial

Application Period: Year-Round

SDPZ Benefit: Awards eligible participants an additional 30% above their approved reimbursement amount. 

 

Requirements:

  • Open to small businesses (25 or fewer employees) that are located in the City of San Diego, face a public street, and have a valid business tax certificate.

  • Applicant must be a commercial occupant. 

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Outdoor Business Grant (Spaces as Places)

The Outdoor Business Grant program supports businesses working to create outdoor dining spaces that contribute to the enjoyment of the public environment. It also seeks to prioritize projects in underserved communities. 

Award Amount: Up to $20,000

Application Period: Year-Round

SDPZ Benefit: EDD will be prioritizing businesses located in underserved communities. Those in the Promise Zone are eligible for larger grant amounts (Category B). 

 

Requirements:

  • Have a valid City of San Diego Business Tax Certificate; 

  • Be independently owned and operated; and

  • Business ownership must have a majority/primary business owner who is a San Diego County resident. 

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Community Development Block Grants (CDBG)

The Community Development Block Grant (CDBG) is a U.S. Department of Housing and Urban Development (HUD) Entitlement Grant that the City receives to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. CDBG funds are prioritized for Promise Zones and Opportunity Zones who have an office in the Promise Zone or provide services to residents of the Promise Zone, awarding up to 6 extra points. 

Award Amount: $50,000+

Application Period: Dependent on NOFA (Notice of Funding Availability) release

SDPZ Benefit: Up to 6 extra points are awarded for organizations in or serving the Promise Zone.

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Additional opportunities for businesses located in the Promise Zone:

Economic Development Funding Program

The EDF allocates Transient Occupancy Tax (TOT) revenue to promote San Diego as a business and tourism destination; it also utilizes the Small Business Enhancement Program (SBEP) to support small business efforts Citywide and in Micro-districts (i.e. Barrio Logan, Encanto). 

 

Award Amount: 

  • Goal A: $ 5,000 - $15,000 

  • Goal B: $10,000 - $30,000 

  • Goal C: $20,000 - $60,000 

  • Goal D: $20,000 - $60,000

Application Period: January 2025-Close

SDPZ Benefit:  No outlined SDPZ Benefit. 

 

Requirements:

Project must align with the Mission Project Goals of the EDF:

  • Goal A: Increase and expand number and size of small-businesses in a neighborhood-focused area,

  • Goal B: Create, retain, and/or expand non-base-sector small businesses,

  • Goal C: Promote the City of San Diego as a visitor destination, and

  • Goal D: Promote and enhance the City of San Diego’s reputation as a Smart City. 

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Consolidated Plan Advisory Board

 Each CPAB member is appointed by the Mayor. The Mayoral appointment is subject to confirmation by a majority vote of the City Council. The CPAB is composed of one representative from each Council District. There are currently vacancies in Council Districts 1, 6, 4, and 9. The CPAB provides advice and recommendations on policy issues relating to the Community Development Block (CDBG) Program, the Home Investment Partnerships Program (HOME), and the Emergency Solutions Grants (ESG) Program. 

Application Period: For questions regarding joining the CPAB, please contact the CPAB liaisons: Michele Marano (mmarano@sandiego.gov) or Nadine Hassoun (nhassoun@sandiego.gov).  

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Small Business Advisory Board

Appointed by the Mayor, the eleven-member advisory board was established in July 1982 to develop a cooperative and supportive atmosphere between the independent business community and the City of San Diego. The board works with the City to reduce regulations, streamline the permit process and reduce taxes for small businesses. The Small Business Advisory Board typically meets on the fourth Tuesday of every month and any member of the public is invited to attend. Meetings convene at 8:30 a.m. and are currently taking place in-person.

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Affordable, In-Fill Housing and Sustainable Buildings Expedite Program

The program provides expedited discretionary and ministerial permit processing for eligible affordable, in-fill housing and sustainable development permits and building projects. Eligibility is based upon the Affordable, In-fill Housing and Sustainable Buildings Regulations, City Council Policy 600-27, and San Diego Municipal Code (SDMC) §143.0915. This information bulletin provides further clarification on eligibility requirements for Expedite Program processing. The Development Services Department requires projects with any residential component to provide 10 units or more to be eligible for expedite (except within the Promise Zone there are no limits). 

Application Period: A request to confirm program eligibility is required prior to submittal to DSD-ExpediteProgram@sandiego.gov.

SDPZ Benefit: No limit to units built

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