Laserfiche WebLink
Exhibit G –Small Business Retention Incentive <br />Description <br />Businesses having 1 to 25 full-time employees that have operated with a physical presence in San Marcos <br />for at least 24 months are eligible to apply for the Small Business Growth Program to receive incentives <br />related to remaining in or expanding operations in the City of San Marcos. The City will offer loan funding <br />that will be forgiven if the business remains in continuous operation for at least 24 months after the funding <br />is approved. The funding is considered a loan that must be repaid in the event that a business defaults on <br />the grant terms and conditions, but will convert to a grant that does not need to be repaid if the business <br />remains in continuous operation for at least two years. <br /> <br />Objective <br />The City of San Marcos recognizes the impact of small businesses on the local, regional, and national <br />economy. The following Small Business Incentive Program policy is designed to help support the needs of <br />the San Marcos small business community through flexible, timely assistance. This program assists <br />businesses that are in jeopardy of closing due to external economic impacts by providing them with short- <br />term working capital. <br />Eligibility <br />Tobe eligible for consideration, a business must: <br /> Be located and have a non-residential location within the corporate city limits of the City of San <br />Marcos; <br /> Have continual operation of business in San Marcos for at least 24 months before requesting <br />incentives; <br /> Employ 1 to 25 full-time employees; and <br /> Demonstrate that the company would otherwise close permanently, relocate to another <br />municipality, or not expand its operations in San Marcos should support not be received from the <br />City. <br />The City Manager shall have authority to administratively approve incentives targeted to support small <br />businesses to a financial amount not to exceed $50,000 per business. This incentive shall be in the form of: <br />A. A one-time jobs-based incentive of up to $5,000, or <br />B. Assistance with targeted infrastructure in the City’s right-of-way. <br /> <br />Only full-time W-2 jobs will be eligible for jobs-based grants. This incentive can fund employee hiring/signing <br />bonuses, relocation bonuses for employees that are moving to take an open position, and employee <br />retention bonuses. There is a cap of $1,000 per employee. Infrastructure assistance will be only considered <br />for portions within the City’s right-of-way. <br />Business owners must submit a plan for how they will use the funding. Business owners who receive funding <br />will be required to attend a free financial literacy session as part of the City of San Marcos small business <br />counseling program or similar approved program. Employees receiving a grant through this program must <br />reside or be moving within the City of San Marcos zip code of 78666. <br /> <br />Process <br />1. A business owner must complete an application and submit it to the City’s Economic Development <br />Staff. <br />2. City staff will review the application for completeness and present a recommendation for approval <br />16 <br /> <br />