Small Business Grant Program

The City of El Monte Small Business Grant Program is a locally administered economic support initiative funded through the federal Community Development Block Grant (CDBG) Program provided by the U.S. Department of Housing and Urban Development (HUD). The program is intended to assist qualifying small businesses located within the City of El Monte by providing one-time grants of up to $10,000 to support business continuity, staff retention, and ongoing service delivery to local residents. The City has established the program to strengthen local economic stability while ensuring compliance with HUD national objective requirements tied to low- and moderate-income community benefit standards. The grant is designed specifically for small businesses operating in El Monte and prioritizes businesses that directly serve local low- and moderate-income populations or retain qualifying employees. Eligible businesses must meet several operational and administrative requirements in order to participate. Businesses must be physically located within El Monte city limits, maintain a current City of El Monte business license, employ fewer than 20 employees including owners, and have operated continuously for at least six months. Applicants must also provide or obtain a Unique Entity ID (UEI) number through SAM.gov and submit all required documentation at the time of application. The City will only accept one application per applicant even if the applicant owns multiple businesses within the city. Businesses previously awarded funding under this program are not eligible to apply again. Additionally, businesses operating from residences or solely online are not eligible. The program specifically excludes businesses involved in gaming, liquor or tobacco sales, marijuana dispensaries, manufacturing, businesses with active code violations, businesses outside city boundaries, and businesses currently involved in bankruptcy proceedings. A major component of eligibility involves compliance with HUD national objective requirements under either the Low Mod Area Benefit (LMA) or Low Mod Job Retention (LMJ) categories. Under the LMA objective, businesses must operate in primarily residential service areas where at least 51 percent of residents are low- and moderate-income persons, and the business must provide services that meet local community needs. Under the LMJ objective, businesses must currently employ and retain at least one low- and moderate-income employee or demonstrate that a qualifying position will be retained or filled by a qualifying individual during turnover. Businesses must demonstrate that grant assistance is necessary to preserve qualifying jobs. The City and its Business Resource Center may assist applicants in determining whether they satisfy the LMA or LMJ qualification standards. Grant funds may be used for a broad range of operational and business-support activities intended to stabilize and strengthen small business operations. Eligible expenses include commercial lease or mortgage payments, utilities, payroll expenses excluding owner compensation, business inventory and supplies, marketing and promotional materials, website development and related business services, and equipment purchases necessary for business operations excluding vehicles. Funds may also be used for overhead costs that help businesses maintain continuity and service quality. However, the City strictly prohibits the use of funds for personal property purchases, repayment or refinancing of existing debt, tax arrearages, fines or penalties, political or religious activities, lobbying, general government expenses, and personal emergency or income replacement purposes. Any changes to the approved use of funds require written approval from the City at least five days before modifications occur. The application process requires businesses to submit a completed and signed application along with either Attachment A documenting LMA qualification or Attachment B documenting LMJ qualification. Additional required materials include payroll records or DE 9C wage reports, tax returns demonstrating financial condition or revenue loss, three months of bank statements, a completed IRS Form W-9, supporting expense documentation, a current El Monte business license, and documentation related to the business’s UEI number. The City reviews applications on a first-come, first-served basis until available funding is exhausted. Applications may be obtained online or in person at the Housing Counter in City Hall West during normal business hours. Submission of an application does not guarantee funding approval, and the City reserves the right to modify, suspend, reopen, or terminate the program at any time. The City also requires applicants to comply with duplication of benefits requirements because the funding source is federally supported through HUD CDBG allocations. Businesses must complete a Duplication of Benefits Affidavit disclosing any overlapping financial assistance received for the same business expenses. The City may request additional documentation to verify whether previous assistance overlaps with requested grant activities. If duplication is identified, the City may reduce the award amount or deny the application entirely. Successful applicants must agree to ongoing monitoring requirements and submit follow-up documentation within approximately two months after receiving funds. Monitoring may include payroll records, receipts, lease agreements, invoices, and other documentation demonstrating that grant funds were used in accordance with approved purposes and federal regulations. The program is currently accepting applications and does not provide a formal application deadline in the published materials. Funding availability is limited and applications are processed until all available funds are exhausted. Because the City refers to the initiative as the 2025-2026 and 2026 Small Business Grant Program, the opportunity appears to operate as a recurring local assistance initiative tied to annual or periodic CDBG allocations. Contact information for the program includes the El Monte Housing Division, which may be reached by phone at (626) 580-2070 or by email at josesaldana@elmonteca.gov. Additional program administration assistance is also available through City staff including the Housing Counter and Business Resource Center.

Ensure the business clearly demonstrates qualification under either the LMA or LMJ federal objective standards and submit all required financial and licensing documents at the time of application because incomplete applications will not be accepted and funding is distributed on a first-come first-served basis.