Signal Hill to grant qualifying microbusinesses $5,000 each in relief

During its Tuesday, Jan. 25, meeting, the Signal Hill City Council agreed to grant 10 Signal Hill microbusinesses—those with 10 or fewer employees—$5,000 each for COVID-19 relief and recovery. 

Microbusinesses can submit grant applications to the City between Jan. 31 and Feb. 18. Signal Hill will award grants no later than Feb. 28, according to Economic Development Manager Elise McCaleb. 

The application will have 15 questions, McCaleb said. To be eligible for a grant, businesses must be located in Signal Hill, have no more than 10 employees and show a decline in revenue of at least 25% between 2019 and 2020.  

If more than ten qualifying businesses apply, the City will decide by lottery which 10 will receive a grant, McCaleb noted.

Over the past nearly two years, Signal Hill businesses received $105 million in federal COVID-19 relief loans through the March 2020 Coronavirus Aid Relief and Economic Securities (CARES) Act and April 2020 Paycheck Protection Program (PPP), McCaleb said.

According to the staff report, 126 Signal Hill businesses received loans through those programs of $150,000 or more to support more than 6,600 jobs. The Small Business Administration and Federal Treasury did not provide data for businesses given loans less than $150,000.

Signal Hill also used part of $2.7 million in aid it received from a March 2021 American Rescue Plan Act (ARPA) to support the city’s small businesses, replace a water main on E. 33rd St. and distribute food to families in need, McCaleb said. ARPA included $350 billion in aid for city and state governments to compensate for lost tax revenue. 

The $50,000 that Signal Hill will grant qualifying microbusinesses is part of a $5.8 million budget surplus from the City’s 2020-2021 fiscal year. The council decided earlier this month to save most of that surplus but spend $300,000 for small businesses, food distribution and police equipment. 

To help decide how to allocate the $50,000, the City conducted an online survey and received 23 responses from small businesses. Of those, nearly half have been in business for 16 years or more, McCaleb said. 

Of survey respondents, 20% reported a decline in revenue due to COVID-19. They also expressed difficulty paying for utilities and rent or mortgage on top of having to purchase personal protective equipment (PPE). 

In terms of how to allocate the grant money, 90% of respondents said they’d like smaller amounts given to more businesses with only 10% wanting larger amounts given to fewer businesses. 

The grant application will ask businesses to provide expenses from April 2020 to the present, including rent, payroll and benefits, utilities, signs and marketing, enhanced cleaning and supplies and PPE, McCaleb said.

All five council members expressed support for the grant program, only asking staff to extend the application window from two weeks to three weeks to allow businesses more time to respond.  

Small business owners can find the grant application on the City’s website at CityofSignalHill.org on Jan. 31.