As part of the City’s commitment to recovery of our small business sector, the Office of Economic Development & Cultural Affairs has begun work under the $1.17 million grant from U.S. Department of Commerce’s Economic Development Administration (EDA) CARES Act Recovery Assistance. 

The City of San Jose’s Small Business and Manufacturing Recovery Initiative will provide more support to our small businesses and manufacturers in underserved areas of the City hardest hit by the pandemic. The two-year Initiative starts by OEDCA leveraging partnerships with the San Jose Downtown Association and Manufacture: San Jose as well as contracting with community-based technical assistance providers to help build resilience into our business ecosystem that has been severely stressed during COVID-19.   

The grant will provide the following support activities: 

Outreach and workforce support to our manufacturing companies through nonprofit partner Manufacture: San Jose. Manufacturing is the city’s largest job sector and was hit hard by COVID-19, with more than 10,000 jobs lost regionally through December 2020. Manufacture: San Jose will aid this industry’s recovery and connect disadvantaged communities and displaced workers with the opportunities for economic advancement that can be provided by well-paid manufacturing jobs in San Jose. 

Helping local technical assistance providers to provide direct support to businesses and business networks in hard-hit commercial neighborhoods. This funding will allow us to “scale up” emerging neighborhood business associations and provide learning and support on topics like access to capital, business transformation, safe operations, digital marketing, etc.  Technical assistance partners include non-profits and financial institutions with the knowledge, staff and connections to help business owners deal with loans, negotiate with landlords, and operate more profitably.

Mentorship for emerging business organizations and enhanced downtown business outreach through a partnership with the San Jose Downtown Association.  SJDA will provide support to existing and emerging business groups so that they can better serve their communities, now and long after the pandemic.

Fielding a study on how small businesses can benefit from Opportunity Zones and be part of investments that benefit communities in low-income neighborhoods. 

The program will focus most resources on Downtown, Central and East San Jose, areas that have experienced higher COVID-19 infection rates than the rest of the city. These areas are also characterized by higher unemployment rates and are historically underserved in terms of business assistance and access to capital.  

Technical Assistance Providers will be selected for funding through a competitive bid process. Under contract to the City they will provide trainings and assistance in subject matter areas that could include the following:  

• Capital Access -  Assisting businesses gain access to capital by selecting the right loans or grants, identifying appropriate lenders, and preparing documents 
• Business Re-invention - Guiding businesses in adjusting their business models to take advantage of new opportunities and pivot away from operations that may be less marketable post-COVID-19 
• Real Estate Assistance -Renegotiating leases, identifying new space, understanding tenant – landlord obligations  
• Business Planning -Training to develop or revise solid business plans 
• Financial Stability -Teaching strategies for building strong revenue and reserves for resilience in this or future crises 
• Ecommerce Development -Supporting business to pivot from in-person to online operations; training in online sales platform options, order fulfillment and distance-based service delivery 
• Employee Ownership – Consulting and help for businesses to explore transition to an employee ownership model to help companies survive  
• New Business Formation -Training on starting a business, obtaining seed funding, finding space