Microenterprise Recovery Grant Program

The Microenterprise Recovery Grant Program is a targeted local recovery initiative developed by the City of Pasadena to aid small businesses significantly impacted by the 2025 Eaton wildfire and windstorm. This grant opportunity is intended to help low-to-moderate income microenterprises—defined as businesses with five or fewer employees, including the owner—stabilize and recover from disaster-related disruptions. The program is funded through federal Community Development Block Grant (CDBG) allocations administered by the U.S. Department of Housing and Urban Development (HUD), but it is managed locally by the City of Pasadena, making it a municipally administered, federally funded initiative. Funds are distributed on a reimbursement basis, with eligible businesses able to receive up to $5,000 in grant support. This program strictly prohibits duplicative aid. Applicants must affirm via affidavit that grant funding will not reimburse expenses already covered by insurance, FEMA, or other disaster-related grants. The purpose of this requirement is to ensure that the CDBG dollars fulfill unmet needs only, adhering to federal duplication-of-benefit policies. Eligible use of funds includes essential operational and overhead expenses such as rent, utilities, inventory, equipment, insurance, legal services, marketing, and employee wages (excluding business owner compensation). However, ineligible uses include personal expenses, pre-award costs, political financing, and repayment of non-business debt, aligning with broader CDBG ineligibility clauses specified under 24 CFR Part 570. Eligibility criteria are tightly defined to ensure resources are directed to the most affected local businesses. Applicants must operate a brick-and-mortar business within Pasadena city limits, hold a current Pasadena Business License, and qualify as a microenterprise. Furthermore, business owners must demonstrate they fall below 80% of the area median income (AMI) and provide supporting documentation of economic hardship directly tied to the wildfire or storm damage. Additional prerequisites include SAM.gov clearance, for which the City offers access to free technical assistance to facilitate registration. The application window for the 2026 cycle opens on March 19, 2026, and closes on April 16, 2026. The application process includes submission of various required documents, such as profit and loss statements, payroll records, tax returns, and a narrative describing the economic impact of the disaster. Optional documentation such as photos of damages and insurance claims may strengthen the case. The City has outlined a clear and accessible submission process and will notify selected applicants within four weeks after the deadline. Successful candidates must then undergo an Environmental Review by city staff before final selection. Applications are reviewed for completeness, eligibility compliance, and the substantiation of hardship claims. The grant prioritizes businesses that have experienced significant disruptions, and the quality of documentation provided plays a key role in application evaluation. The City of Pasadena's Economic Development team is available to answer questions or provide support throughout the process. Contact emails include [email protected] and [email protected]. This program is not recurring and is intended as a targeted intervention for a specific disaster event.