Pasadena Seeks to Award $125,500 in Eaton Fire Disaster Relief Grants to Local Micro-Enterprises

The Finance/Audit Committee is scheduled to consider recommending that the City Council authorize $125,500 in Community Development Block Grant disaster relief funds for a micro-enterprise recovery grant program aimed at small businesses impacted by the 2025 Eaton wildfire and windstorm.

The program, overseen by the Economic Development Division within the Office of the City Manager, would assist local low- to moderate-income micro-enterprises — defined as businesses with five or fewer employees, including owners. As a committee of the City Council, the Finance/Audit Committee serves in a strictly advisory capacity, and the City Council would retain final authority on the budget amendment and program authorization.

If the City Council ultimately approves the recommendation, the Economic Development Division anticipates awarding grants of up to $5,000 each to as many as 25 micro-enterprises. The reimbursement-based grants could be used to cover overhead and operational costs, rent and utilities, business inventory, salary and wages for employees, and marketing expenses.

The funding stems from a Community Development Block Grant received from the United States Department of Housing and Urban Development under Title I of the Housing and Urban Development Act of 1974. As part of the Department of Housing’s Five-Year Consolidated Plan for 2025–2029, approved by City Council on May 19, the City Council approved $200,500 for the Commercial Facade Improvement Program and $125,500 for the Microenterprise Recovery Grants via the Housing Department. The Housing Department received the federal funds in December 2025, following a temporary pause on federal fund use ordered in July 2025.

Per Housing and Urban Development guidelines, eligible applicants must operate from a brick-and-mortar location within Pasadena city limits, qualify as a micro-enterprise with five or fewer employees including owners, and have owners whose income is below 80% of the Area Median Income.

Applications for the program opened March 19 and are set to close April 16. Grant information has been shared through the Economic Development Division newsletter, a press release, liaisons, and direct emails. Information is also posted on the Economic Development Division web page with an application link and guidelines.

The Division would review all materials submitted by businesses to determine which expenses are eligible per the grant guidelines. Grants would be awarded in an amount not to exceed $5,000 per business, and the Fiscal Year 2026 Operating Budget for the Economic Development Division would be amended by $125,500.

Approval of the recommended action would amend the Office of the City Manager’s Fiscal Year 2026 Operating Budget by recognizing revenue and appropriating $125,500 in the General Fund. The deadline to spend the funds is June 30, and the one-time funding would not be available in future years.

The Finance/Audit Committee is scheduled to meet at 3 p.m. on Monday, April 13, in the Council Chamber, Room S249, 100 North Garfield Avenue, in Pasadena. For more information call (626) 744-7311 or visit https://www.cityofpasadena.net/commissions/agendas/.