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.   

Types of Incentives

Funding awarded (up to $100,000) may be used for any of the following: 

• Payment or reimbursement of City fees associated with a tenant improvement and/or construction of a new building.  

• Secured or unsecured financing through existing City loan programs. 

• Payment made by the City directly to a business or organization to support the hiring or training of employees through a workforce training program. 

• Dedicated technical assistance by City staff. 

Minimum Eligibility Criteria 

BIP recipients must meet the following criteria: 

• The business must be in the City and have a current Business Tax Certificate issued by the City or provide a letter of intent to locate in the City. 

• The business must meet one of the following criteria:

  • Small businesses with up to 24 full-time equivalent (FTE) employees

    • Create/retain at least one qualifying job in an area of need (Promise Zone, Opportunity Zone, or LMI Census Tract) or at least three qualifying jobs outside an area of need or
    • Make a capital investment of at least $150,000 in an area of need (Promise Zone, Opportunity Zone or LMI Census Tract) or at least $300,000 outside an area of need

  • Medium/Large businesses with 25 FTE employees or more

    • Create/retain at least three qualifying jobs in an area of need (Promise Zone, Opportunity Zone or LMI Census Tract) or at least five qualifying jobs outside an area of need or
    • Make a capital investment of at least $500K in an area of need (Promise Zone, Opportunity Zone or LMI Census Tract) or at least $1 million outside an area of need.

  • Qualifying job(s) must be located within the City and pay between 80% and 120% AMI ($84,000 - $100,000 annually for 2024) for a minimum of 18 months. 

  • Click here to see if your business is located within the Promise Zone, Opportunity Zones or Low-Moderate Income Census Tracts. 

• For funding awards of more than $20,000, the business must also implement Economic Development Strategy Activities as required below under Tiers 2-4.  

Funding Award Tiers  

Note: Examples of Economic Development Strategy Activities include providing wraparound services (such as bus passes or childcare), training and workforce development for workers, engaging in “Innovation economy,” or installing benches or outdoor art to cultivate vibrant commercial corridors and cultural spaces. Please see the City’s Economic Development Strategy. 

Additional Requirements  

An authorized representative of the Business must submit an online or physical application.  

The City may request the minimum amount of information and documentation required to evaluate the application, including financial statements, payroll information, and other proprietary information relevant to determining BIP eligibility.  

All BIP participants must enter into a Business Incentive Program Agreement with the City. 

The program administrator will contact applicants via email within two business days of application submission. Be sure to check your Spam inbox for any emails ending in “@sandiego.gov” if you do not receive communication within that time. 

Learn more about the Council Policy 900-12. 

Business Incentive Program Preliminary Application

Questions? Contact us at 619-236-6700 or sdbusiness@sandiego.gov.