Loading...
HomeMy WebLinkAboutCity of Huntington Beach - 2026-03-03 0NTiNGro 2000 Main Street, F�� 3.�.�o Huntington Beach,CA /�� F17, 92648 City of Huntington Beach APPROVED 6-0-1 V �° (BURNS-ABSENT) NsouNri CP File #: 26-178 MEETING DATE: 3/3/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager • VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Christopher Kennedy, Economic Development Project Manager Subject: Approve the Surf City Small Business Digital Grant Program Statement of Issue: City Council is asked to review and approve the Surf City Small Business Digital Grant Program, a competitive initiative designed to strengthen the digital capacity and economic vitality of Huntington Beach brick-and-mortar businesses. If approved, the program will award $1,000 grants to 15 small businesses, helping them expand their online presence, increase customer engagement, and grow in today's digital marketplace. The program would provide a combination of structured digital marketing training and direct financial assistance and be administered by the City in partnership with the Orange County-Inland Empire Small Business Development Center (OCIE SBDC). Financial Impact: The proposed $15,000 investment, funded through the City's Economic Development budget (10080101.75300), will provide fifteen Huntington Beach small businesses with $1,000 grants each to support digital marketing initiatives. The total cost of the program is fully budgeted and requires no additional appropriations. Recommended Action: Approve the Surf City Small Business Digital Grant Program; and authorize the City Manager or his designee to execute up to fifteen (15) individual $1,000 grant agreements on behalf of the City and disburse funds to participating businesses upon successful completion of program requirements. Alternative Action(s): Modify the Surf City Small Business Digital Grant Program requirements, or deny approval of the program, and decline to authorize the City Manager to execute grant agreements or disburse funds. Analysis: The OCIE SBDC is a.federally funded, regional organization offering free training, consulting, and City of Huntington Beach Page 1 of 3 Printed on 2/25/2026 powered by LegistarT"' 108 File #: 26-178 MEETING DATE: 3/3/2026 resources to help small businesses grow. In late 2025, it surveyed over 1,200 businesses across Orange, Riverside, and San Bernardino counties, identifying customer acquisition as a top challenge. Many businesses reported difficulty reaching new customers, building a digital presence, and using marketing tools, with nearly 20% conducting no marketing at all. The survey also highlighted operational and financial pressures, including rising costs, uneven cash flow, staffing challenges, and limited access to affordable financing, making revenue growth and customer engagement critical. These findings underscore the need for targeted digital marketing support. In response, the City proposes the Surf City Small Business Digital Grant Program to strengthen the digital capacity and economic vitality of local brick-and-mortar businesses. The program specifically focuses on brick-and -mortar commercial businesses that contribute directly to commercial corridor vitality, neighborhood foot traffic, and local sales tax generation. The program offers a combination of structured digital marketing training with direct financial assistance. Similar OCIE SBDC-led digital training and grant programs have been implemented in other Orange County cities, such as Lake Forest and San Clemente, demonstrating the replicability and favorable results of this model at the local level. Program Components: • Virtual group training sessions • One-on-one consulting with SBDC advisors • Curriculum focused on "Creating a Digital Presence" Participants will learn to improve online discoverability, optimize Google Business profiles, leverage Facebook and Instagram, develop marketing content, launch paid advertising campaigns, and measure performance using analytics. Eligible businesses that complete the program will receive a $1,000 grant to implement a paid digital advertising campaign developed with a SBDC consultant. Funds must be used exclusively for approved digital advertising and will be issued in a single payment upon program completion. As part of the City's Economic Development Strategic Plan to retain and grow local businesses, funding has been allocated to support 15 qualifying businesses. The cohort size of 15 is intentionally modest to align with the $15,000 budget allocation while enabling high-quality, individualized training and consulting. A smaller cohort also allows staff and SBDC advisors to deliver more personalized support and to evaluate program outcomes before considering future expansion. Eligibility Requirements: • Brick-and-mortar commercial business located in Huntington Beach • Current City business license and in good standing • 2-25 full-time equivalent employees (including the owner) The 2-25 employee range targets small, growth-oriented businesses that are large enough to meaningfully benefit from digital marketing investments, yet small enough to lack dedicated marketing staff. This focus ensures that resources are directed to those businesses most likely to see measurable improvements in online visibility, customer engagement, and revenue. City of Huntington Beach Page 2 of 3 Printed on 2/25/2026 powered by Legistar" 109 File #: 26-178 MEETING DATE: 3/3/2026 Applications will be reviewed for completeness and eligibility by the SBDC, with final verification in coordination with the City. If demand exceeds funding, participants will be selected via lottery to ensure fairness and transparency. The program includes two virtual training sessions followed by a final in-person session. Participants who complete all sessions, including one-on-one consulting, will receive their grant at the conclusion of the in-person training. Applicants must verify that funds will be used solely for paid digital advertising; any other use is strictly prohibited. Administrative responsibilities for the City will be limited. The OCIE SBDC will manage application intake, eligibility screening, training delivery, participant consulting, and quality assurance. City staff responsibilities will primarily include program coordination, verification of business license status and good standing, execution of grant agreements, and processing of payments. This level of staff involvement represents a modest time commitment that can be accommodated within the existing staffing resources. Enhanced online visibility, targeted outreach, and data-driven strategies such as SEO and social media advertising are expected to increase customer traffic, sales revenue, and long-term business sustainability. By improving competitiveness and strengthening individual business performance, the program supports local economic vitality and contributes incrementally to overall sales tax base stability. Based on the program's structure, anticipated benefits, and alignment with City goals, staff recommends approval of the Surf City Small Business Digital Grant Program. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A- Develop an updated economic development strategy to ensure business retention, local investments and job growth. Attachment(s): 1. Grant Agreement and Program Guidelines 2. PowerPoint Presentation • City of Huntington Beach Page 3 of 3 Printed on 2/25/2026 powered by LegistarTm 110 CITY OF HUNTINGTON BEACH Surf City Small Business Digital Grant Program Agreement THIS CITY OF HUNTINGTON BEACH'S SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM AGREEMENT(the "Grant Agreement") is made and entered by and between The City of Huntington Beach, a California municipal corporation("City") and [Name of Business Grantee], a [type of entity] ("Grantee"),with respect to the following: A. City has partnered with the Small Business Development Center(SBDC)to implement the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM ,which will provide skills and funding to small businesses. B. City has approved the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM (the"Program Guidelines"),which are incorporated herein by this reference, governing the provision of grants to qualifying small businesses in the City. C. Grantee has applied to receive a grant from the City pursuant to SURF_CITY SMALL BUSINESS DIGITAL GRANT PROGRAM. D. City has agreed to award the grant described in this Grant Agreement on the terms and conditions set forth in this Grant Agreement and the requirements of state and federal law. NOW, THEREFORE,in consideration of the covenants and agreements of the parties set forth in this Grant Agreement and for other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the parties, intending to be legally bound, agree as follows. 1. REPRESENTATIONS AND WARRANTIES. Grantee hereby represents and warrants to City that Grantee has read and is familiar with all of the terms, conditions, and provisions of the Program Guidelines and this Agreement, and based thereon, Grantee represents and warrants that: • It is a for-profit business and is physically located in Huntington Beach; • The business has a current City of Huntington Beach business license on file; • .As of January 1, 2026 it has a minimum of at least two (2) employees—including the owner and does not exceed a maximum total of twenty-five(25)full-time equivalent employees; • It is in good standing with the City (current on tax bills,no citations,no liens or judgments, etc.); • It has not been suspended or debarred or otherwise excluded from receiving federal funding; and, • It understands the grant is distributed, contingent upon and will be only, after attending a mandatory three-week training program and meeting with a SBDC consultant one-on-one. 1 26-17679/404688 111 2. GRANTEE'S COVENANTS. Grantee covenants and agrees, during the term of this Grant Agreement,to perform all the acts and promises set forth in this Agreement including: (a) Program Requirements. Grantee has read and shall comply with all of the Program Requirements. This includes, but is not limited to,the requirements outlined in the Program Guidelines and this Grant Agreement. Further, Grantee shall comply with all applicable state,federal, and local laws. (b) Further Assurances. Grantee agrees to execute such other and further documents as may from time-to-time in the reasonable opinion of City be necessary to perfect, confirm, establish, reestablish, continue, or complete the purposes and intentions of this Grant Agreement. (c) Other Agreements. Grantee shall not enter into any agreement containing any provision that would be violated or breached by the performance of its obligations under this Grant Agreement. 3. SELF-CERTIFICATION AND RECORDS RETENTION. As a condition precedent to all duties and obligations of City under this Grant Agreement, Grantee shall deliver to City any documents that the City may reasonably require, including such documents necessary to satisfy the Program Requirements. 4. ELIGIBLE ACTIVITIES. Eligible activities for the use of funds are to cover expenses for paid online advertising("Eligible Expenses"). Any use of funding other than that to support the business is strictly prohibited. The following is a nonexclusive list of expenditures that shall not constitute Eligible Expenses payable from the Grant Funds: (a) Rent or mortgage expense. (b) Utilities. (c) Payroll and benefit costs. (d) Inventory. (e) Business planning. (f) Personal protective equipment (g) Operational expenses for the business (h) Damages covered by insurance. (i) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act or contributions by States to State unemployment funds. (j) Reimbursement to donors for donated items or services. (k) Workforce bonuses other than hazard pay or overtime. (1) Severance pay. (m)Legal expenses or settlements. (n) Debt service or loan repayment. Any expenditure not set forth above must be approved by the City in writing. 26-17679/404688 • 112 5. GRANT AMOUNT. The City hereby awards Grantee a grant in the maximum, not-to- exceed amount of ONE THOUSAND DOLLARS ($1,000) ("Grant Funds")to pay the costs of Grantee's Eligible Expenses. The Grant Funds will be disbursed by the City upon the Grantee attending three (3) mandatory virtual training sessions and one(I) one-on-one consultation. 6. EVENTS OF DEFAULT. The matters described in Sections 6.1-6.3 shall constitute Events of Default and shall entitle City to exercise the rights and remedies under Section 7. 6.1. Failure of Warranty or Representation to be True. The failure of any representation or warranty provided by Grantee to be materially true. 6.2. Violation Covenants. Grantee's failure to perform, or violation of, any of the covenants provided in Section 2. 6.3.DefauIt Under Grant Agreement. Grantee's breach of any of the material terms, covenants, or conditions set forth in this Grant Agreement. 7. REMEDIES. 7.1. City's Specific Rights and Remedies. On the happening of any Event of Default, City, in addition to any and all rights provided by law or equity,may: (a) Demand repayment of the Grant Funds, with interest at the legal rate; (b) File suit against Grantee; and (c) Exercise all other rights and remedies provided by this Grant Agreement or state or federal law. 7.2. Collection Costs. If suit or action is instituted to enforce any of the terms of this Grant Agreement, the prevailing party shall not be entitled to recover from the other party its attorney fees and costs in addition to all other sums provided by law. 7.3.Notice of Default. City shall provide Grantee with thirty (30) calendar days' prior written notice and an opportunity to cure any other act or omission constituting an Event of Default.Notwithstanding anything to the contrary stated herein. 8. REPORTS AND RECORDS. Eligible Expenses are considered necessary expenditures related to paid online advertising. Grantee shall keep such books,receipts, purchase orders, and similar documentation evidencing use of the Grant Funds, and such other records as the City may reasonably request to evaluate Grantee's compliance with this Grant Agreement. Grantee shall make available to City and/or their representatives during normal business hours of City all such records pertaining to the use of funds provided under this Agreement for inspection, including the right to copy, audit and make records and transcripts from such records. If upon auditing by 3 26-17679/404688 113 the City, it is determined the Grantee did not expend the funds consistent with the Eligible Expenses, it may constitute an Event of Default and, as such,the City may exercise all Remedies identified in Section 7.1. Grantee is required to retain the records described herein through December 31, 2029 following the execution of this Grant Agreement by the City Manager (or designee);the provisions of this section shall survive the termination of this Grant Agreement. 9. GENERAL PROVISIONS. 9.1.Notices. Any notice under the Grant Agreement shall be in writing, without implying the obligation to provide such notice.Any notice to be given or document to be delivered under the Grant Agreement shall be deemed to have been duly received on(a) delivery, if delivered in person or by any expedited delivery service that provides proof of delivery; or(b)the 5th City business day after mailing, if mailed by certified mail,return receipt requested,postage prepaid, addressed to City or Grantee at the appropriate addresses.The addresses for notices are those set forth below or such other addresses as may be hereafter specified by written notice by the parties: If to City: The City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Christopher Kennedy If to Grantee: [Grantee's name and address] Attn: 9.2. Indemnity. Grantee agrees to protect, defend, and hold harmless the City and its elective or appointive boards, officials, officers, agents,employees, and volunteers from any and all claims, liabilities, expenses or damages of any nature,including attorney's fees,for injury or death of any person, damage to property, interference with the use of property and any other monetary damage claims, arising out of, or in any way connected with performance of this Grant Agreement by Grantee, Grantee's agents, officers or employees, subcontractors, or independent contractors. The provisions of this section shall survive the termination of this Grant Agreement. 9.3. Counterparts. This Grant Agreement may be executed in multiple counterparts, all of which together shall constitute one instrument. 10.TERM. This Grant Agreement is effective upon executed by the City Manager(or designee) and shall continue therefrom for a term of one(1) calendar year. 4 26-17679/404688 114 IN WITNESS WHEREOF, Grantee and,City have executed this Grant Agreem.ent as of the dates-written beloW. GRANTEE, CITY OF HUNTINGTON BEACH„a municipal corporation of the State of California • By: City Manager Name: Its: City Clerk Date: APPROVED AS TO FORM: City Attorney 5 26-17679/404,688 115 Surf City Small Business Digital Grant Program Program Description and Guidelines / r All \ TING ro lib. Ilk VW 4/ Ilk !0 o`` �• p' . `'Ikk v1 r: ilk _ S _ tt : -- .—_-; -7—.7.L.— t\ �" .. ry ` ' tom" k � a �� L ++*tare.*••* ` Ns,COUNT`? fn,,1 City of Huntington Beach 116 City of Huntington Beach Surf City Small Business Digital Grant Program Program Overview About the Program The City of Huntington Beach is offering a three-week Surf City Small Business Digital Grant Program in partnership with the Orange County-Inland Empire Small Business Development Center ("SBDC"). The SBDC serves as a resource for entrepreneurs and small business owners throughout the country by providing consulting services,business plan development,financial plan guidance,and more.The Surf City Small Business Digital Grant Program will provide training and funding to brick-and-mortar commercial businesses, physically located in Huntington Beach (collectively, "Business or Businesses") seeking to increase their social media presence and improve their digital marketing strategies.All eligible Businesses are invited to apply. The Surf City Small Business Digital Grant Program is comprised of two virtual sessions and one in person group training session supplemented by one-on-one consulting session with the theme of "Creating a Digital Presence". The program is based on the availability of funds, program guidelines, and submission of all required information and supporting documentation. Businesses with a minimum of two employees—which may also include owner, --and a maximum of twenty- five employees (full or full-time equivalent combination) may be eligible to receive a digital marketing grant of one thousand dollars ($1,000). The grant must be used for a paid digital/online advertising campaign following the conclusion of the program, developed during the training program and in conjunction with an SBDC consultant. Funding Availability The City's Economic Development-Division will be responsible for oversight of the Surf City Small Business Digital Grant Program, and the disbursement of funds will take place through the City's Finance Department. The SBDC, the City's partner, will be responsible for program administration, application processing, underwriting, training, and for the review and approval of financial and business documentation for disbursement. The SBDC may also be asked to provide the City with regular updates regarding the program's implementation. City staff are obligated to fulfill the terms and conditions of the funds as established by the City Council, these program guidelines, and Federal, State, and local rules and regulations. Program Description The SBDC created a virtual training program aimed at assisting Businesses with"Creating a Digital Presence" for their business. Each Business will learn how to set-up an online profile through Google, will reach out to customers for a Google review and will learn how to create and send Facebook or Instagram posts.The program will highlight how to use paid and non-paid advertising to generate leads that turn into sales and/or increased community awareness. The program will culminate with Businesses receiving a small grant to put towards digital/online advertising that will generate customer traffic and/or community awareness. The program will consist of building a digital presence over three weeks.All sessions will take place in a group format and will be coupled with individual one-on-one consulting with SBDC consultants. The program will be conducted in English only. Page 2 of 8 117 City of Huntington Beach Surf City Small Business Digital Grant Program The training program will cover the following topics: All about Google Understanding how customers find you in a digital world • Why Google? • Creating your own Google profile Reaching my Audience through Facebook(FB) and Instagram (IG) How to use social media, specifically Facebook and Instagram • Capturing pictures and video • Creating a successful: call to action My First Facebook/Instagram (FB/IG) Post How to post a video or picture to Facebook or Instagram • Each Business will post their video/picture • How to attract a fan base to social media • Creating a successful social media campaign that increases sales Advertising on Social Media Different types of advertising campaigns on Facebook and Instagram • What is the cost to run an ad campaign?How much should you spend? • What should you be measuring? • What goes in a FB/IG ad campaign • Are Twitter and Tik Tok a good option for your Business? Setting up the FB/IG Campaign Let's put together and launch your FB/IG Campaign • What are you offering(Call to action and image/video)? • Who are you targeting? • Which Keywords are you using? What is your goal? • How much are you spending? • Wrap-up: Utilizing Grant for Paid Digital/Online Advertising—Measuring and Tracking Each Business will be assigned an SBDC business consultant to assist them with their paid advertising platform. The SBDC consultant will provide one-on-one assistance,customized to each Business' needs. The SBDC will continue to work with each client through the program and beyond. Every quarter, the SBDC will track and measure the success of each Business as they deploy their marketing campaigns. The SBDC will track change in sales,jobs created and/or increase in customer traffic. City Reserved Rights The City reserves the unqualified right, in its sole and absolute discretion at any time: (1)to amend or terminate this program with no recourse for any proposing applicant; (2)to choose or reject any or all applications received in response to this program; (3)to modify the application deadlines; (4) Page 3 of 8 118 City of Huntington Beach Surf City Small Business Digital Grant Program to request additional information of the applicants as deemed necessary and appropriate by the City; (5) to conduct further due diligence with applicants or any third party; (6) to modify the City's objectives or the scope of the program; (7) to modify program requirements, general terms and conditions, or eligible activities; and/or(8)to disqualify any proposing applicant on the basis of any real or perceived conflict of interest that is disclosed or revealed by materials submitted or by any data available to the City. Eligibility Eligibility for the Surf City Small Business Digital Grant Program is limited to businesses that meet criteria established by the City of Huntington Beach. General Terms and Conditions* • Must be a brick-and-mortar commercial business,physically located in Huntington Beach; • Must have a current City of Huntington Beach business license on file. • Cannabis-related businesses, gambling facilities, adult entertainment businesses, massage parlors, non-profits, and largely cash-based businesses are not eligible; • Residential or real estate projects including short-term rental operators are also not eligible; • As of January 1,2026,must have at least a minimum of two employees—which may also include the owner - and no more than twenty-five full-time equivalent employees (two part-time employees equal one full-time employee); • Must be in good standing with the City (current on bills, no liens or judgements, etc.); • Must be in compliance with any City permit or license requirements applicable to the Business; • Must submit the application and all required supporting documentation. • City employees and elected and appointed officials are not eligible to participate in this program. Eligible Activities The funds must be used to develop a paid digital/online advertising campaign for the purpose of increasing the Business's social media presence.This advertising campaign will be developed during the program and in conjunction with an SBDC business consultant. Each applicant will need to sign and verify that the use of funds will be spent on a paid advertising campaign, such as expressed above. In addition, the applicant must attend the virtual Surf City Small Business Digital Grant Program sessions to receive these funds.Any use of funding other than for paid advertising is strictly prohibited. In addition,the applicant cannot use these funds for paid advertising costs that have been or will be reimbursed or recovered through other funding programs. Equal Opportunity Policy The City of Huntington Beach and the SBDC shall not discriminate upon the basis of sex, age,race, creed, color, religion, national origin, marital status, ancestry, or physical handicap in accepting applications and processing program application. Page 4 of 8 119 City of Huntington Beach Surf City Small Business Digital Grant Program Application Process Application The Surf City Small Business Digital Grant Program application includes information about the Business, the number of employees, location of the business, and amount of time in business. The application and Grant Agreement will require the following Attestations: • The Business must be a brick-and-mortar commercial business, physically located in Huntington Beach,with a current City of Huntington Beach business license on file. • The Business understands the grant is distributed as part of a three-week digital marketing training program. • As of January 1, 2026, the Business must have at least a minimum of two employees—which may also include the owner - and no more than twenty-five full-time equivalent employees (two part-time employees equal one full-time employee). Application Period The program application will be available at 8:00 AM on ,2026.Applicants must apply for the training program by visiting www.hbbiz.com and submitting the application online. Applications must be submitted online and will only be accepted from 8:00 AM, ,2026, to 11:59 PM, , 2026. Applications received online after this due date and time will be considered late and will not be accepted. The City will disburse fifteen $1,000 grants, a total of $15,000, to fifteen eligible Businesses. Applications will be reviewed on a first-come first-serve basis and will be vetted by both the SBDC and the City of Huntington Beach in order to ensure that applicants meet the outlined requirements. The. City anticipates the number of applications will exceed the amount of funding available for disbursement. As a result, the City will implement a lottery system for all eligible Businesses if necessary. Documentation Requirements Upon pre-approval and selection for the program,Businesses will be required to submit the following documents by ,2026 at 5 PM,for review and verification to receive the grant: • Business License; and, • Current W-9. In addition, the SBDC will provide the selected Businesses with the following documents to complete and submit by ,2026: • A signed Huntington Beach Small Business Grant Agreement. At the end of the calendar year, the City will contact each Business to request a copy of its 1099-G. Although selection is not guaranteed, Businesses should begin to collect the required documentation Page 5 of 8 120 City of Huntington Beach Surf City Small Business Digital Grant Program ' in order to expedite the approval process in the event they are selected. Grant Review and Approval Process Review The application will be reviewed by the SBDC to determine application completeness and preliminary eligibility.The application must be complete by the application submittal deadline date of 11:59 PM, , 2026 Lottery The City of Huntington Beach is expecting the Surf City Small Business Digital Grant Program to have a large number of applications.If the number of applications far exceeds the amount of funding that is available for disbursement,the City will implement an internal lottery system for all eligible Businesses. Once applications and eligibility have been approved, they will be assigned a number and entered into a lottery. This is an internal process that will not be open for public viewing. Applicants will be notified of lottery status. Program participants selected in the lottery will be contacted by email,phone, and/or letter starting ,2026. Verification and Eligibility Determination Upon pre-approval and selection, the SBDC shall request the applicant submit all required documentation for review and verification for grant approval. The SBDC will assign a consultant to work with each individual grantee to assist with completing all required documentation. Grantees documentation will be submitted directly to SBDC on a secured site. If the grant request meets the criteria for program funding, all required documentation must be ,2026, by 5:00 PM to remain eligible. Grant Disbursement Grant funds will be disbursed upon submission of all required documentation and successful completion of the program requirements,including one-on-one consulting,virtual training sessions, and the in-person training. The City will issue the grant in a single disbursement. All grant funds shall be expended on a digital/online paid advertising campaign. Grant Report The Business recipient shall keep documentation evidencing use of the Grant Funds. The City and/or the SBDC may request to evaluate the Business' compliance with the Grant program. If it is determined the Business did not expend the funds consistent with the program guidelines, it may constitute an Event of Default under the Grant Agreement. Post Grant Follow Up The City's Finance Department will contact each business for the provision of a 1099-G at the end of the calendar year. Page 6 of 8 121 City of Huntington Beach Surf City Small Business Digital Grant Program The SBDC will continue to work one-on-one with each grantee,throughout the next,twelve months. If contacted by the City or SBDC,all awardees will be required to update the City on their Business and if additional employees have been hired or employees retained. A twelve-month report will be created by the SBDC and the City of Huntington Beach, to document the success of the program. By acceptance of the grant,the Business agrees to comply with City information requests that may include use of photos or business logos. In addition, participating Businesses may be invited to a City Council meeting following the conclusion of the Surf City Small Business Digital Grant Program in order to be recognized. • Page 7 of,8 122 City of Huntington Beach Surf City Small Business Digital Grant Program Contact Information For additional information regarding the Surf City Small Business Digital Grant Program,please contact the following: City of Huntington Beach Economic Development Division Christopher Kennedy Economic Development Project Manager 2000 Main Street Huntington Beach, CA 92648 (714) 375-5186 christopher.kennedy@surfcity-hb.org For questions about the guidelines and application or assistance in completing the application and to set up a one-on-one consultation (at no cost),please contact the SBDC at: Manal Richa, Director CSUF SBDC 15375 Barranca Parkway, Suite A111 Irvine, CA 92618 (657)256-3874 office Manal.Richa@ociesbdc.com Page 8 of 8 123 _.#4,4,........ 1'.\cWil I N G\\ _..........,_T 0 — * N.. •••i N� R p p R,q 7 ••• o . 6' ‘ Surf City Small Business - - -- _ ••. � \ Digital Grant Program r. ry /\ \ ��� r, f/1111 ( I n�,� . — 1 f - ��''' , : = Kriss Casanova, Economic Development Manager ---_-- - - • Chris Kennedy, Economic Development Project Manager . . ,. ' "PP_. -7--- '/. l ': $ • 0 - ---- . ., :__ - : 0 1 •••�FB P� �•• 0 0 F • 0 •••••••••• V March 3, 2026 NTH 0 t ' j,i'U How to Help Small Businesses Grow in 2026 Top interests for 2026 KEY FINDINGS business growth: Customer Ac•uisitio he top • Marketing strategy operational challenge for small businesses is reaching new • Al customers and growing sales. • Financing to grow/scale Financial Pressure Businesses • Contracting are grappling with rising costs, • E-Commerce uneven cash flow, and limited access to affordable funding. • orkforce Issue` Hiring and retaining qualified staff remains Biggest needs for 2026: a significant challenge for many businesses. • Marketing Marketing Ga•s.' early 20% of • Increase sales businesses do not engage in • Increase clients marketing, limiting their ability to grow and compete. • Capita • Equipment *2025 OCIE SBDC Survey(1,200+ responses) identified key small business challenges across Orange, Riverside, and San Bernardino counties and informs targeted support efforts. SupportingBusiness Retention & Growth Responds to local business challenges: • Customer acquisition • Digital visibility in an increasingly online marketplace requirement structure marginfixed,focus interest•ebef resources marnt f,n, cor.o. 'ng food,invest gro. th market sbdc draftCOnSlstent prlcefind�ng strong Helps brick-and-mortar businesses: shortengineerbetterre rev en Uefinancial e Da•, S back • Compete more effectively online playdec*. qualified aportsfodt clean ncrease rood • Drivefoot traffic and increase sales tarifftofgure • Strengthen long-term sustain ability stabletowerff • conomic star+business al CapitaE�bay qual:t, t"��: working rising p ld II � T icreate`- Advances the City's Economic Development Strategic Plan: gUestclose • Business retention ratega° ackingctientemployee expenses costs gro` • Small business support :Customef°� ��asef- �� economy sates. ,,r=Y,,j;>'funds deregulation m}ne,,, • Stronger commercial corridors suppliesreachnakangprivate steady simplify squeeze Targeted, measurable investment supporting: • Long-term business retention • Local sales tax generation Program Overview • Partnership with OCIE SBDC AMERICAN S _ SBDC • Three-week digital marketing program for 15 Huntington Beach brick-and-mortar businesses CALIFORNIA ORANGE COUNTY INLAND EMRPI • Combines: • Group training sessions • One-on-one SBDC advising , j „... • Hands-on instruction in Google and social media t - , marketing • Development of a customized paid digital advertising-'""`` li . campaign 1t r • $1 ,000 grant per participant to implement the i s OPEN / \-,,_ _: -1-_ campaign _ �— • Designed to increase online visibility, customer engagement, and measurable growth . ,• , , Program Components • Two virtual group training sessions cp Share °' • One-on-one consulting with SBDC advisors Followers Hashtags a N Google Followers Live • Final in-person session to review strategy Instagram Snapchat 2 _21 TlkTok and implementation Twitter E SOCIALISEO Twitter ® L Linkedln • Curriculum: "Creating a Digital Presence," — MEDIA Oruanic Advertising including: YouTube Content Social media o Optimizing Google Business profiles Engagement Likes Network o Leveraging Facebook & Instagram Brand .cual Results o Launching paid advertising campaigns o Measuring performance with analytics Eligibility & Selection • Huntington Beach brick-and-mortar business How many employee do businesses in Huntington Beach have? • Active City business license in good • 1-4 Employees 7154% standing • 5-g Employees 15 93% • 2-25 full-time equivalent employees 1-4 :,, • 10-1gEmployees 727% (including owner) Employees • 20-49 Employees 2.87% • 50-gg Employees 167% • Applications reviewed for eligibility and 100•Employees o 72% completeness Data Source:Applied Geographic Sokaions and FT Locations 2024,TaxPoundauon.org 2021 and FT Locations research. • Lottery selection if demand exceeds available funding Financial Imp act r • Total investment: $15,000 �.0 �.., --__--7. --ter=_ ir • Fully funded within the City's Economic - lit,i\:1 • W SMALl Develo ment bud et �'' .� ' M , z� r I. N p g ,� a - .,io ;, W. • No additional appropriations required -- ' ''" ''' % �::5 si E3St)SI ' '5 v I .1 III 'r> I 4 1 , .i • Single disbursement issued upon =-- ,��,1 ��, � ' , _ , .4, , i T successful completion a ; GRANT varoxaawiL i,, -____ __ lie.:`,°- ; - „--. --qT\ ,"...:, "` - 1,11 0 • Structured for measurable outcomes and LL '' -_a, r . ,,�. F,..., ,_ accountability Recommendation CITY OF HUNTINGTON BEACH • Approve the Surf CitySmall p p Surf City Small Business Digital Grant Program Agreement Business Digital Grant Program THIS CITY OF HUNTINGTON BEACH'S SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM AGREEMENT(the"Grant Agreement")is made and entered by and • Authorize the City Manager to between The City of Huntington Beach,a California municipal corporation("City")and [Name of Grantee],a [type of entity] execute up to 15 grant ("Grantee"),with respect to the following: agreements A. City has partnered with the Small Business Development Center(SBDC)to implement the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM,which will provide skills and funding to small businesses. • Direct staff to administer and implement the program B. City has approved the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM p g (the"Program Guidelines"),which are incorporated herein by this reference,governing the provision of grants to qualifying small businesses in the City. C. Grantee has applied to receive a grant from the City pursuant to SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM. . , Questions . . .f,,, ;..,,,...i...v..--:4*-....1„.v..,.--:. ., ....... _ ..., _ .:....„..;;Th., ,..„Tiii, 6,,,if,,,,,.„,,..., • • 1.q 11,1 ,,.. ....2 '', ..11j11$11:•.91(16f:1 a ,I .11 a:Aii,L.,•'-' 7...1 :--.51.:!-_::—:-', ILF_ t! 't rrtj ?„;11./..g..,.. ..,,,,,, vs.-,-.,..„,„,„,,,..„..--.A \ ,, — --- ''' • i •• '9" :,....-:„.„6, . :... \\\\t''' ,,..15:2:0 `-........, -...-..+..........., 0 ..- —. X.,...,; ,( .....:: .,--.. i: .\.'•.7---."7"....•' ---..-.'—. i r i, . It•e•.%.?''.. ' •)'.10.- ' ' . • - •lt;,.e...,4,40 " ir,, -• . il.',/: , 4tt '' :'' L !: t".. .." ' • •°'-I-:C..ei 0 ' • -'- %, —. .—4161/0.40.04i0,'&-"4:-.•.:F4.17-t!t".,- --. ..•• 1‘. -• ' .rN ,.. '''be`c* • _... • N s\-• : • . . , .,.... Business .".' Highlight 4. ,. : _ . .. ...: 0 4. e• • 041111111111 % . 1 I Allk. 6 )11.11111111111k, f l _ ay II MI all IlM 1111 .:- - i MI PM ilki Rkli ii IN ill 1 I P, 1 IV NO I pp ki No pik I 1 110 In ki II 111 Atiltil 1 miw. iri IP ill . 124 in ' ) P:\,,f4\71; 1‘"*'''l os••••••• ee (14/ likh, ( �.•• , 0RP0RA7- •••• \ . __________ __ - 7. % ,.40‘,.i 7, w Surf City Small Business ,,,, i Digital Grant Program - „ , , r, , „�,� -- -- -- — Kriss Casanova, Economic Development Manager ---� --� - j Chris Kennedy, Economic Development Project Manager ;;Iiismologaolit . :,:",,,./.,,, )i).,_ ,/: %%um.. 1 •� _ .. _ Jo gt • 1(4.eOa,.0 -,s,,nl\1. .4'\ (.'4 .• 17, 19oc? ,.• c Ø O 0ONTNp` March 3 2026 AO/ ..,,,,,/// 125 How to Help Small Businesses Grow in 2026 Top interests for 2026 KEY FINDINGS -- business growth. '• Customer Acquisition: etop • Marketing strategy Operational Chalienge for small • A) businesses is reaching new customers and growing sales. • Financing to grow/scale • Businesses • Contracting are grappling with rising costs, • E'Com me rce uneven cash flow,and limited access to affordable funding. • Hiring and retaining qualified staff remains Biggest needs for 2026. a significant challenge for many businesses. • Marketing • Nearly 2O%of • Increase sales businesses do not engage in • Increase clients marketing, limiting their ability to grow and compete. • Capital • Equipment *2025 OCIE SBDC Survey (1,200+ responses) identified key small business challenges across Orange, Riverside, and San Bernardino counties and informs targeted support efforts . 126 SupportingBusiness Retention & Growth Responds to local business challenges : • Customer acquisition • Digital visibility in an increasingly online marketplace requirement process structure resources marginf1xe focus interest relief rowth downtown, orrowingfood,invest Helps brick-and-mortar businesses : shortens neerraftCOnSistentprise.„g „l svo Q betterreven revenue • expand� back Compete more effectively online PlaYdebt qualified sportsfoot clean I ••� ri good • Drive foot traffic and increase sales additional ` tariff figure • stable lower o- Qel conomic Strengthen long-term sustainability afford staff business `"t 3 a1 capitalpay quality lan h hire working resin �,,, create Advances the City' s Economic Development Q td�oe , bond tPyuit,5tay rate gth „`n 4 p 1 Strategic Plan : �ainpbackin esm grow ee expenses dcosts eprc�duct�on • Business retention , ndP-;;t�n„custorneregecreaeprod o erate funds deregulation money tY • Small business support supptiesreachnakingprivate steady simplify squeeze • Stronger commercial corridors Targeted, measurable investment supporting : • Long-term business retention • Local sales tax generation 127 Program Overview • Partnership with OCIE SBDC AMERICANS SliIDC • Three-week digital marketing program for 15 Huntington Beach brick-and-mortar CALIFORNIA businesses a, r� �� ; • Combines : -n; • Group training sessions • One-on-one SBDC advising � _ - ' • Hands-on instruction in Google and social media marketing ,. • Development of a customized paid digital - advertising campaig ':::*!-n ��. • $1 , 000 grant per participant to implement 0 the campaign ki • Total City investment $ 15, 000 • Funded through existing Economic �; ,, �. Development budget = . �° • Designed to increase online visibility, 128 Program Components • Two virtual group training sessions Share f ,,, • One-on-one consulting with SBDC advisors Followers Hashtags 101 to Goo9 le Followers Live • Final in-person session to review strategy Insta ram Snapchat .� TikTok Twitter and implementation f SOC I AL���' �� SEO .L • Twitter Ie, ��nkedln er • Curriculum.. "Creating a Digital Presence," FdIEDIA ' including: YouTube Content Organic Advertising Social medics o Optimizing Google Business profiles Engagement Likes Network o Leveraging Facebook & Instagram Brand cual Results o Launching paid advertising campaigns o Measuring performance with analytics 129 Eligibility & Selection • Huntington Beach brick-and-mortar business How many employees do businesses in Huntington Beach have? • Active City business license in good standing 1-4 Employees 7154% , f 5-9 Employees 15 93% • 2-25 full-time equivalent employees (including owner) focused on small 1-4al o-ig Employees 72774 growth-oriented businesses Employees • 2o-4gEmployees 287% • • Applications reviewed for eligibility and �fl ggEmployees > ioo=Employees 0 72% completeness Data Source a;ark,ed Geographic Solutions and FT Locations 2024,TaxFomdaow Orp'�1 and FT Locations research. • Lottery selection if demand exceeds available funding 130 Recommendation CITY OF HUNTINGTON BEACH Surf City Small Business Digital Grant Program Agreement Approve the Surf City t THIS CITY OF HUNTINGTON BEACH'S SURF CITY SMALL BUSINESS DIGITAL pp y GRANT PROGRAM AGREEMENT(the"Grant Agreement")is made and entered by and Sma 11 Business Digital between The City of Huntington Beach,a California municipal corporation("City")and [Name of Business Grantee],a (type of entity) Grant Program ("Grantee"),with respect to the following: A. City has partnered with the Small Business Development Center(SBDC)to implement the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM,which will provide skills and funding to small businesses. • Authorize the City Manager to execute up to B. City has approved the SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM (the"Program Guidelines"),which arc incorporated herein by this reference,governing 15 grant agreements the provision of grants to qualifying small businesses in the City. C. Grantee has applied to receive a grant from the City pursuant to SURF CITY SMALL BUSINESS DIGITAL GRANT PROGRAM. • Direct staff to D. City has agreed to award the grant described in this Grant Agreement on the terms and administer and implement conditions set forth in this Grant Agreement and the requirements of state and federal rAW the program 131 Questions ? i,.,* . t'...t)...-,7..'ilc.:- ', I '111,-(irilil i -.,"'1'2,1j;:"'il''''''''1"-'1,11;—Irk—'1i 1 fiFit';:--,—', ..' '-----T-;:*: tR Y ` `tY 1 S in d' .e,.,,.,_.mow_