Tenant Improvement Grant Program

The City of Novato Tenant Improvement Grant Program supports eligible business owners and commercial property owners in improving active commercial properties within Novato city limits. Previously limited to downtown businesses, the program has been expanded citywide as part of the City's effort to support local businesses, strengthen commercial areas, attract customers, and contribute to a more vibrant local economy. Grant funding is paired with assistance from the Marin Small Business Development Center, which helps applicants review financials, strengthen business plans, and consider additional funding options where necessary. The program prioritizes projects that advance the City's economic development objectives and create visible, lasting improvements to commercial properties. Program goals include supporting downtown businesses and broader economic development, enhancing retail corridors, preserving or restoring valuable historical features, adding long-term value to improved properties, supporting projects that are ready and feasible, and advancing equity or addressing economic need for small business owners and first-time entrepreneurs. Priority may be given to underserved corridors, first-time entrepreneurs, and businesses facing financial barriers. Eligible improvements are primarily exterior in nature. Priority examples include exterior facade upgrades, signage and lighting, windows and doors, transparency improvements, ADA accessibility upgrades, exterior painting and surface restoration, landscaping and frontage improvements, and historic preservation elements. Permit fees may also be reimbursed. All proposed projects must comply with City of Novato design standards, and the City may require applicants to modify proposed work to meet applicable standards. Applicants are responsible for obtaining all required permits, hiring licensed contractors, satisfying insurance requirements, and maintaining funded improvements at their own expense for the duration of their tenancy or ownership. Funding is provided as a matching reimbursement grant. The City may award up to 50 percent of eligible costs actually expended by an applicant. For projects with a total cost under $10,000, the City may, at the discretion of the Selection Review Panel, fully fund the project. Grant funds are not advanced. Payment occurs only after construction is completed and applicable City requirements have been satisfied. Before disbursement, applicants must provide proof that contractors have been paid in full, provide required lien releases, and satisfy all Tenant Improvement Grant requirements. The City reserves the right to approve, partially fund, or reject applications. Program funds are limited and the program may end when available funds have been allocated. Eligible applicants include business owners and commercial property owners with an active business tenant whose active commercial property is located within Novato city limits and who have a current Novato business license. Properties may not have pending code violations. Applicants who do not own the property must submit a property owner letter confirming knowledge of the proposed participation and consent to the improvements. Businesses that received a Tenant Improvement Grant within the previous two years are ineligible. Contractors must be licensed, required insurance must be maintained, and the City must be listed as an additional insured where required. Applicants begin by submitting the City of Novato online application form with a project description, itemized budget, signed or draft construction contract, proof of contractor licensing, project or storefront photos, an improvement maintenance plan, and required business and contractor insurance documentation, including workers' compensation coverage. City staff conduct an eligibility check and then eligible applicants meet with a Marin SBDC consultant. Applicants subsequently provide a design proposal containing drawings, materials, finishes, colors, construction details and specifications, and information required for applicable permits. A Selection Review Panel evaluates complete proposals, after which applicants receive written approval or denial and, if approved, notification of the maximum grant award. Approved applicants finalize the scope and budget with City staff, obtain required approvals and permits, and authorize construction to begin within 30 days of approval. The City may inspect work in progress and conducts a final inspection before reimbursement. The program is currently open and accepts applications continuously until available funds are allocated. Awards are made on a first come, first served basis subject to the City's selection review process and discretion. Reimbursement checks are issued within 60 days following final City sign-off after the applicant submits proof of payment and the required payment request and lien-release documentation. Program questions may be directed to the City of Novato Economic Development Department at econdev@novato.gov or 415.899.8936. Planning questions may be directed to planning@novato.gov. Marin SBDC advisors can assist with applications, and Miriam Hope Karell may be contacted at miriam@marinsbdc.org. After submitting an application, applicants are instructed to schedule an advising session with their Marin SBDC advisor.

Prioritize visible exterior improvements and clearly show how the project supports economic development, enhances a retail corridor or historical feature, adds long-term property value, is ready and feasible, or advances equity or addresses economic need. Ensure the proposed design complies with City standards, submit complete documentation, use licensed contractors, obtain required permits before construction, and do not make post-application design changes without required City approval.