Call it relief with a side of irony.
The City of Santa Monica has been operating in a “state of fiscal distress” for more than a year. But this week, City Hall announced $5,000 grants for 20 local businesses.
The new Small Business Relief Microgrant program drew 129 applications for a share of the $100,000 pot. Among those coming out on top: Cookie Good, McCabe’s Guitar Shop, Fia Restaurant and The Crow comedy club.
“Small businesses are the reason a block feels like a neighborhood instead of a row of storefronts,” Mayor Caroline Torosis said when the program was announced in September. “They are also where most Santa Monicans work and where a lot of us got our start.”
The grants come as City Hall continues to raise fees for parking and other services to offset declining revenues and legal expenses related to a $229 million sexual abuse case.
City spokesperson Melinda Espinoza told The Sun that the program was created at the request of Torosis and Council-member Lana Negrete as part of a council item last year.
“Council approved the $100,000 funds to support economic recovery of our small businesses,” Espinoza said.
Her response, however did not address our specific question about how the spending fits with the city’s declaration of fiscal distress.
The one-time grants are intended to help businesses make practical investments: repair equipment, upgrade websites, buy inventory, pay for advertising or cover professional services. The money cannot go toward construction, renovations, debt payments, taxes, fines or personal expenses.
The program is part of Santa Monica’s Realignment Plan, with the city pitching the funding as a way to retain locally owned businesses and keep commercial corridors active.
Applications closed October 1. Under the published guidelines, eligible businesses needed a Santa Monica storefront, 50 or fewer employees, annual gross revenue below $3 million and a valid city business license, among other requirements.
Espinoza said the three-person review team consisted of the economic development manager (Jennifer Taylor), economic development administrator and an economic development staff assistant. Business names and addresses were hidden during the review “to avoid any potential bias,” she said.
Applications were first screened for eligibility. With more eligible applicants than available grants, the team then scored businesses using additional considerations, including longevity, location in a commercial district, veteran ownership, recent openings or expansions, and economic disruptions such as theft, vandalism or construction impacts, Espinoza said.
Legacy businesses — defined as those operating continuously in Santa Monica for at least 20 years — were among those given additional consideration. So were businesses that opened or expanded within the past 18 months and those that experienced an economic shock during that period.
Who made the cut:
Dining, cafes and treats
- Bun And Mi — 1004 Montana Ave.
- Cookie Good — 448 Wilshire Blvd.
- Espresso Cielo — 1431 Second St., #C
- Fia Restaurant — 2454 Wilshire Blvd.
- La Diperie — 2441 Main St.
- Odd One Out Tea — 1260 Third Street Promenade
- Papille Gustative — 2823 Main St.
- Pontu — 3117 Ocean Park Blvd.
- Mr. Charlie’s — 262 26th St.
- Upper West Restaurant — 3321 Pico Blvd.
Shopping and services
- Bubble Beach Laundry — 633 Main St.
- Classic Tile & Flooring, Inc. — 928 Santa Monica Blvd.
- McCabe’s Guitar Shop — 3101 Pico Blvd.
- Sand ’n Surf — 131 Broadway
- Sir Speedy — 2632 Santa Monica Blvd.
Entertainment, activities and wellness
- Clay Café — 620 Wilshire Blvd.
- Crow Comedy — 2525 Michigan Ave., Unit F4
- Phoenix Classical Pilates — 2412 Wilshire Blvd.
- Ten Women II — 1128 Montana Ave.
- THE Cube VR Immersive Park — 1248 Third Street Promenade
Following the money
Recipients will have the opportunity to join the free Buy Local Santa Monica marketing campaign and be featured in a Small Business Spotlight showing how they used the grants.
The city plans to provide updates after three months and one year. Under the program guidelines, recipients must participate in follow-up calls covering what they bought, whether their projects were completed and whether their operations or employee counts changed.
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