GUIDE to doing business
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1 GUIDE Santa to doing business Ana in
2 table of contents On behalf of the Santa Ana City Council, I want to welcome you to our city. Santa Ana has long been the county s government powerbase and today, this historic city serves as Orange County s true downtown. Businesses, tourists and locals come to Santa Ana for its fresh, unexpected experiences. From gleaming, technologically advanced office buildings and innovative exhibits at our many museums and galleries, to luxury high-rise living and distinctive restaurants, we think you ll be pleasantly surprised. We are pleased that you have chosen to locate your business in one of the most dynamic and prosperous business environments in the state. Santa Ana has a multitude of diverse benefits to offer our businesses and residents. Attracting and retaining a prosperous business community is key to achieving our goal of maintaining a sound economic base. Santa Ana also has one of the most successful and active economic development programs, which is staffed by professionals dedicated to assisting the business community. The City is committed to creating a business-friendly environment complete with strong infrastructure, public safety programs, and culturally enriching and diverse activities. The City of Santa Ana Economic Development Division offers a variety of services and incentives to help your business. This publication is designed to provide an overview of the business tools and resources available to assist you with your business growth and success. 10 Steps to Setting up Shop in Santa Ana Santa Ana W/O/R/K Center Enterprise Zone...8 International Foreign Trade Zone...9 Facade Improvement Rebate Programs...10 Loan Assistance...11 Build Green Initiatives...12 Planning & Building Agency Resources...13 Quick Reference...14 I thank you for your commitment to our city and hope you will feel free to contact one of our Economic Development Specialists at should you have further questions. Sincerely, Miguel A. Pulido Mayor Santa Ana City Council Mayor Pro Tem Claudia Alvarez Councilmember David Benavides Councilmember Carlos Bustamante Councilmember Michele Martinez Councilmember Vincent F. Sarmiento Councilmember Sal Tinajero facts Incorporation: June 1, 1886 City Incorporated Area: 27.2 Square Miles Population: 324,528 (U.S. Census Bureau 2010) Median Age: 29.3 (U.S. Census Bureau 2010) Median Household Income: $55,962 (U.S. Census Bureau 2010) Median Home Price: $287,750 (U.S. Census Bureau 2010) Ethnicity Hispanic: 78.2% Asian: 10.4% White: 9.2% Black: 1% American Indian 0.2% Other 1% (U.S. Census Bureau 2010) Employment: 137,100 (Bureau of Labor Statistics 2010) Unemployment Rate: 13.6% (Bureau of Labor Statistics 2010) Number of Businesses in the City: 12,765 (City of Santa Ana) Number of Retail Outlets: 3,362 (California Retail Survey 2008) Retail Sales: $2,860,212,000 (California Retail Survey 2008) Top Private Employers Alan B Whitson Company Inc. Aluminum Precision Products Inc. Brasstech Inc. DMS - Services LLC First American Title Insurance Company Freedom Communications Inc. Ingram Micro Inc. Ponderosa Builders Inc. Tenet Healthsystem Medical TTM Technologies Inc.
3 10-STEP a plan to setting up shop in santa ana 1. Evaluate Your Needs and Determine Your Location The Economic Development Division provides information on business incentive programs, start-ups, job training and placement, and export development assistance. Working with the private real estate community, the city also assists businesses that want to be established or to expand by identifying possible locations that qualify for tax benefits and incentives. The City of Santa Ana Economic Development Division Phone: (714) Website: 2. Check Zoning Ordinances Zoning ordinances have been established for both home-based businesses and commercial addresses. Use the Property Search Feature on the city s Planning Division website to view information on a particular property. The City of Santa Ana Planning and Building Agency Phone: (714) Website: Planning_Home_Page.asp 3. File a Fictitious Name (DBA) If you intend to name your firm anything other than your own name, you must file a fictitious business name, also called a DBA (Doing Business As). To file, visit the Orange County Clerk Recorder office or visit their website for an online application. Orange County Clerk-Recorder 12 Civic Center Plaza, Room 106 Santa Ana, CA Phone: (714) Website: 4. Get a Business License Any person operating a business in the city must obtain a business license and pay an annual business license tax. The City of Santa Ana Business Tax Office Phone: (714) Website: FI-BusLicGenFAQ-Lvl3.asp 5. Get Important State Permits The Economic Development Division and Business Tax Office can help you determine what other permits or licenses you may need. Contact the appropriate offices listed below. Wholesale and Retail Businesses Apply for a Seller s Permit. State Board of Equalization Phone: (949) Website: Restaurants and Food Vendors A Health Inspection is required. County of Orange Health Care Agency Phone: (714) Website: Restaurants Serving Alcohol and Liquor Stores A Liquor License is required. California Department of Alcoholic Beverages Control Phone: (714) Website: For Some Types of Retail and Manufacturing South Coast AQMD Phone: (909) Website: Business Structure If you are filing as a corporation, S corporation, partnership, or limited liability company, you must register. Secretary of State Phone: (916) Website: 6. Get the Proper City Permits Zoning For questions about Zoning, Environmental Review, Land Use, and Conditional Use Permits. Phone: (714) Planning & Building For questions about Plan Check, Plumbing, Mechanical, and Electrical Permits. Phone: (714) Public Works For questions on Public Right-Of-Way, Sanitation, and Recycling. Phone: (714) Fire Prevention Services For questions about Hazardous Materials, Underground Storage Tanks, and Fire Investigations. Phone: (714) Permit Assistance Team For questions about which Permits to obtain. Phone: (714) Get a Federal Employer Identification Number A partnership, corporation, or a sole proprietorship with employees requires a Federal Employer Identification Number. A sole proprietorship without employees can use the owner s social security number. Internal Revenue Service Phone: (800) Website: 8. Get a State Identification Number The same rules generally apply for a State Tax Identification Number as for a Federal Tax Identification Number. Please refer to the above. Employment Development Department Phone: (888) Website: required_to_register_as_an_employer.htm 9. Open a Business Checking Account Separating business and personal accounting is essential when you file your tax return. 10. Successful Businesses Have Business Plans The Small Business Development Center offers low cost workshops on how to prepare a business plan. For a schedule of workshops: Phone: (714) Website: 4 5
4 santa ana w/o/r/k center work, opportunity, resources and knowledge Santa Ana s One Stop Center offers a range of services associated with employment, job training and counseling for adults and youths. Among the Santa Ana W/O/R/K Center s many goals and services, they are committed to providing: Job search assistance Employee referrals and job placement Industry specific job listings Unemployment insurance claim filing Enterprise Zone hiring program assistance Online labor market information Networking groups Case management and career counseling Career assessment Financing and business development referrals Career research library Workshops including: resume writing and interviewing techniques Free use of phones, faxes, computers and internet service On-The-Job Training Older worker program Annual reports & business profiles on-the-job training The Santa Ana W/O/R/K Center is currently offering the On-The-Job Training (OJT) Program funded by the Recovery Act and Workforce Investment Act. The program is designed to provide job seekers with work experience and/or hands-on training to develop their skills. Our goal is for the job seeker to possess the skill level necessary to fulfill needs and secure full-time employment. Depending on the job seeker s eligibility and job requirements, employers who participate in the OJT program will benefit from the following service: Job posting on CalJOBS Recruitment and prescreening services Customized training to meet your needs Reimbursement up to 90 percent of employees wage rate for a certain period of time To participate in the OJT program, employers must meet the following requirements: Be interested in hiring and providing training to qualified job seeker Compliant with American Disability Act (Please consult with staff member for further explanation) No layoffs in the past six months Current job opening is not a displacement from a regular employee or a person who has been laid off from the same or similar position Able to provide General Liability Insurance in the amount of $1,000,000 and identify the City of Santa Ana as the Certificate Holder workforce investment act programs Through the Workforce Investment Act (WIA) funding, the Santa Ana W/O/R/K Center is able to assist the workforce needs of businesses. Businesses of all types and sizes are eligible for this free service. Job Listings Businesses may post job openings free of charge. Job orders are seen by a wide network of workforce professionals who have access to qualified candidates, ranging in skill, education and experience. Businesses can indicate on the Job Order Form the method of contact for job applicants. On-Site Services The Santa Ana W/O/R/K Center is able to provide facilities to test, interview or screen job applicants. Additionally, the Santa Ana W/O/R/K Center can arrange special hiring events and job fairs. Consider it a human resources office away from the office. On-The-Job Training (OJT) Businesses interested in hiring an inexperienced applicant, who may require additional training, may be eligible for a 50% reimbursement of wages paid to that new employee. The OJT funds are subject to the applicant s eligibility under the WIA. Work Experience Businesses interested in providing a training site for a temporary worker for a set number of weeks may be eligible to have the wages paid by the Santa Ana W/O/R/K Center. Like OJT, Work Experience is subject to the worker s eligibility under WIA. rapid response The Santa Ana Rapid Response Team offers services at no cost to Santa Ana businesses and their employees facing layoffs. The program reduces a company s unemployment insurance liability by allowing the Santa Ana W/O/R/K Center to assist ex-employees with re-employment. Benefits of the program include free customized outplacement services for all levels of employees such as: Assistance with Individual Retirement Account (IRA)/401K Planning Assistance with unemployment compensation filing Employment counseling Access to information on other career opportunities Referrals to debt management agencies Relocation and labor market information Resume and interviewing techniques workshops Re-training opportunities for laid off workers Trade Impacted Closures If a business closure is a result of import/export competition, employees will be eligible for certain additional benefits under the North American Free Trade Agreement (NAFTA). The Santa Ana Rapid Response Team can help companies and their employees access these benefits. For further information and assistance regarding these programs, contact: Santa Ana W/O/R/K Center Phone: (714) Website: 6 7
5 enterprise zone international foreign trade zone The Santa Ana Enterprise Zone (EZ) encompasses more than 16 square miles. The EZ program is designed to promote business growth and job generation by offering state tax credits and highly valuable incentives to businesses. Businesses already in the zone can qualify for benefits, as well as new businesses relocating or expanding into Santa Ana s EZ. The incentives provided by the Santa Ana EZ program include: Hiring Credit A qualified business may earn $37,440 or more in tax credits per qualifying employee over a five-year period. Sales or Use Tax Credit California income or franchise tax may be reduced by the amount of sales or use tax paid on certain machinery and machinery parts, data processing, telecommunications and office equipment purchased for exclusive use in the EZ. $1.55 million or more per year in tax credits is available for qualifying purchases. Business Expense Deduction Part of the cost of certain property purchased for exclusive use in the EZ may be deducted as a business expense in the first year it is placed in service. (Amount of deduction changes annually, call for current value.) Net Operating Loss Carryover (suspended for 2002 and 2003 tax years) Up to 100% Net Operating Loss (NOL) for individuals or corporations doing business in the EZ may be carried over for up to 15 years to reduce the amount of taxable EZ income for those years. Net Interest Deduction for Lenders A deduction from income is allowed on the amount of net interest earned on loans made to a trade or business located exclusively in the EZ. Once you have verified that your business address is located in the EZ, consult your accountant or state tax preparer to start taking advantage of the EZ tax benefits. For further information on these incentives, contact: City of Santa Ana Phone: (714) Website: and under Business Incentives click Enterprise Zone Santa Ana s Foreign Trade Zone (FTZ) is a secured area within the United States, where merchandise can be admitted without the immediate payment of U.S. Customs duties or Excise taxes. Importers and exporters can take advantage of our facilities within the FTZ as an arena in which to conduct international business. Merchandise admitted into the FTZ can be repacked, relabeled, cleaned, sorted, sampled, exhibited, destroyed, processed, assembled, manipulated, or exported, all without paying U.S. Customs duties while in the FTZ. Description of Program and Benefits The City of Santa Ana Economic Development Division is a resource for Santa Ana businesses of all types and sizes looking for international trade assistance. International Trade services include global markets research assistance, overseas distributor searches, trade finance assistance, and business matchmaking service with foreign delegations visiting Southern California. What types of businesses are eligible? All businesses located within the Foreign Trade Zone s 92 acres of commercial and industrial land at the 1-5 Freeway and Grand Avenue or within the acres at the southwest corner of Fairview Street and Segerstrom Avenue. Santa Ana recently received an Alternative Site Framework (ASF) status. This shortens the process for companies to secure FTZ status from 12 months to 1 month. For further information on these incentives, contact: City of Santa Ana Phone: (714) Website: and under Business Incentives click Foreign Trade Zone 8 9
6 façade improvement rebate programs loan assistance Downtown Façade Improvement The Santa Ana Redevelopment Agency has developed a program that enables building owners to receive a cash rebate for improvements made to the exterior of buildings. Improving the appearance of buildings help stimulate business and revitalizes the community. Properties located within the Downtown Façade Improvement Area are eligible to receive a cash rebate for improvements up to 50% of total project cost, not to exceed $75,000, including city permits. Rebates can exceed the limit of total project cost at the discretion and approval of the Agency Board. Eligible improvements include those that enhance the appearance of the buildings frontage. Some examples include new signage and awnings, as well as restoration of building materials and architectural features involving steam cleaning, painting, elimination/alternatives to bars on windows, anti-graffiti measures, as well as decorative and security exterior lighting. In addition, the City offers free removal of old signs and awnings with Agency s approval. South Main Façade Improvement Any business located in the South Main boundaries between First Street and Warner Avenue is eligible to receive a cash rebate for improvements. Eligible improvements include those that enhance the appearance of a storefront, new façades, landscaping and irrigation, painting, new signage and awnings, exterior lighting, and parking lot improvements. In addition, the Agency offers free removal of old signs and awnings with Agency s approval. Program Benefits Cost of Improvement Percentage of Rebate $1.00-$14, % $15, $26, % In addition to the rebate, a $2,000 maximum architectural design fee and $3,000 maximum signage reimbursement may be included. The maximum rebate for physical improvements, including city permit fees is $21,900. The availability of rebates will vary in accordance with yearly budget. To apply for the Downtown or South Main Façade Improvement Rebate Program, request an application by phone or online. Santa Ana Redevelopment Agency Phone: (714) Website: SBA Loans An initial interview is conducted to determine eligibility and best financing program available. Benefits include: Low down payment Longer terms Fixed rate of interest, 10 to 20 year fully amortized loans Reduced interest rates Working capital preservation Tax advantages to principals Easier qualifying 504 Debenture Program This program is limited to for-profit corporations, partnerships, or proprietorships with a business history of at least two years and a net worth not to exceed $7.5 million. Small businesses seeking loans to purchase or remodel an existing building or construct a new facility and can provide a minimum 10% down payment can receive loans at below market interest rates. The Southland Economic Development Corporation (EDC) finances 40% of the loan, not to exceed $1,000,000 ($1,300,000 for businesses located in the Enterprise Zone) and may include soft costs. State Loan Guarantee Program Provides loan guarantees for businesses that lack sufficient collateral. Businesses can secure either a term loan or line of credit for up to $500,000. Guarantees are available on small business loan packages that: Can demonstrate reasonable prospect of repayment Have three years historical profits and growth or provide financial projections if in start-up or recovery mode Will use loan proceeds exclusively for business activities within California Are ineligible for traditional financing at reasonable rates, typically due to lack of collateral Will pledge any collateral that is available SBA Loan and 504 Debenture Program Contact Southland EDC to set up an initial interview. Southland EDC provides financial and technical assistance including preparing a complete loan proposal, securing participation of a financial institution, negotiating with third parties to expedite the loan process, conducting the closing session, and recommending alternative financing programs. The 504 debenture is 100% guaranteed by the SBA. Southland EDC Phone: (714) or (888) Website: State Loan Guarantee Program Contact the Small Business Financial Development Corporation of Orange County and provide the following information: Two most recent years of Business Financial Statements, two most recent years Federal Income Tax Returns (business and personal), Personal Financial Statement, and an outline of what the loan proceeds will be used toward. Small Business Financial Development Corporation Phone: (714) or (800) Website:
7 build green initiatives The City of Santa Ana s Planning and Building Agency along with the City Council is fostering Green Building and offering ecologically motivated residents and businesses incentives to go green. new air-conditioner units, new furnaces, and similar equipment for compliance with T-24 Energy guidelines and a determination of efficiency. Solar Permit Fees Waived Requests for a morning or afternoon inspection of windows will be honored. Exceptions to this policy may occur due to daily staffing and workload variations; but whenever possible specific requests will be honored. The City Council has implemented a program to encourage solar power utilization. A Two-Year Permit Fee Waiver Program for solar projects that convert sunlight to energy or heat water is now being offered. Free Solar Plan Check and Solar Building Inspection Services As part of the No-Fee Solar Permit Program, engineering reviews and building inspections for all Santa Ana projects associated with solar energy are performed at no cost. Field Verification of Energy-Efficient Heating, Ventilation and Air-Conditioning (HVAC) Units Santa Ana s construction inspection staff examines planning & building agency resources The Planning and Building Agency plays a critical role in the physical development of the community. The agency s objective is to provide a safe, attractive, and business-friendly community through implementing state and local construction codes, as well as planning and regulating future land uses. Special Window for Inspections Public Counter Hours: Monday Tuesday Wednesday 8:00 a.m. 4:00 p.m. 8:00 a.m. 4:00 p.m. 10:00 a.m. 4:00 p.m. Thursday Alt. Fridays 8:00 a.m. 4:00 p.m. 8:00 a.m. 4:00 p.m. If you are a resident impacted by the cost of transitioning to green living, a contractor marketing green building or a developer utilizing a green environment to establish unique products, contact us regarding these special incentives. Planning & Building Agency Phone: (714) Website: BuildGreenInitiatives.asp Planning Division: General Information: (714) Planning Counter: (714) PlanningDepartment@santa-ana.org Building Permits: Building Permit Counter: (714) Building Plan Check: Building Plan Check: (714) Fire Plan Check: (714) Police Plan Check: (714) The Planning Division serves as a valuable resource for businesses, developers, and real estate professionals to make decisions regarding business expansion and development potential in the City. Staff is available to answer questions related to permissible uses, parking, planning and zoning information. The Permit Counter provides basic information about obtaining necessary permits. Staff is available to answer questions, provide informational handouts, issue permits and accept plans for plan check. Building Plan Check reviews plans for compliance with State building codes, and is responsible for enforcing regulations for disabled access, energy conservation, flood plain management, fire and life safety, structural systems, electrical, plumbing, and mechanical ventilation systems. Building Inspections: Inspection Information: (714) Construction inspection request: (714) Occupancy Inspection request: (714) Community Preservation: General Information: (714) Online complaint submittal at: www. santa-ana.org/pba/communitypreservation.asp 12 Building Inspections provides inspections of new construction, conversions, maintenance, and repair of buildings. This section is also responsible for performing occupancy inspections. The Community Preservation Division s purpose is to improve neighborhoods through neighborhood contact, education of code requirements, responsive and dedicated personnel, fair enforcement of laws and innovative processes. Planning & Building Agency is located at 20 Civic Center Plaza, Ross Annex, Santa Ana 13
8 QUICK REFERENCE The Chamber of Commerce promotes the best of what the Santa Ana area has to offer the largest employers, important public agencies, many entertainment venues, great places for shopping, dining, and lodging, and excellent service providers. The Chamber needs the best companies in every business category to become members. If you are one of these, we want you as a member because promoting your business helps promote our area. Business Support Associations The Black Chamber of Commerce of Orange County (714) Advocates and promotes black business and economic development within the public and private sectors. Website: Downtown Inc. (714) Facilitates the enhancement of Downtown Santa Ana as a vibrant shopping, entertainment, business and cultural destination for all. Website: National Hispanic Women Business Association (714) Supports professional endeavors by promoting business growth through education, mutual support, and networking. Website: Orange County Business Council (949) Works to enhance Orange County s economic development and prosperity to preserve a high quality of life. Website: Orange County Hispanic Chamber of Commerce (714) Represents the interests of and provides access to Orange County s 30,000 Hispanic-owned businesses. Website: Santa Ana Chamber of Commerce (714) Brings in high levels of economic prosperity to area business owners, workers and residents. Website: Santa Ana Merchants Association (714) Promotes small businesses in Santa Ana. Website: Small Business Administration (714) Provides information and services based on unique business needs. Website: Vietnamese American Chamber of Commerce of Orange County (714) Provides a strong network that allows businesses to advertise, build partnerships and give back to the greater community. Website: Business Consulting or Technical Assistance California Manufacturing Technology Consulting (310) Assists manufacturers on improving profits, stimulating growth, creating and retaining jobs and improving productivity. Website: Orange County Small Business Development Center (714) Free consulting in a confidential setting with a team of highly qualified consultants. Website: Public Law Center (714) Pro bono law firm providing access to justice for low income residents. Website: Service Corps of Retired Executives (SCORE) (714) Free, confidential business advice online, face-to-face and workshops. Website: South Coast Air Quality Management District AQMD (909) The air pollution control agency committed to protecting the health of residents, while remaining sensitive to businesses. Website: Southern California Edison (626) Efforts include retaining and expanding at-risk businesses, attracting and advancing key industries. Website: Special Financing Assistance CDFI Clearinghouse (949) Provides economic opportunities and affordable financing for lower-income individuals and communities. Website: Trade Resources Port of Long Beach (562) Served by more than 140 shipping lines with connections to 217 seaports worldwide. Website: Port of Los Angeles (310) One of the premier US gateways for international trade and commerce. Website: Maintenance Services 24-hr Graffiti Removal (877) Abandoned Large Item Pick-Up (714) Abandoned Vehicle Pick-Up On private property (714) On public street (714) Code Enforcement- Shopping Cart (714) Street Lights (714) Street Paving, Repairs (714) Street Sweeping (714) Weed Abatement (714) Police Services Any Emergency (Fire, Police, Medical) 911 Non-emergency (714) Refuse Collection Waste Management of Orange County (714) Traffic & Transportation Signal Repairs (714) Traffic Operations (714) Transportation Permits (714) Water Resources Sewer/Storm Drain Maintenance (714) Water Customer Service & Billing (714) Water Maintenance & Construction (714) Water & Sewer Permits (714) Utilities Santa Ana Water (714) Southern California Edison (800) Southern California Gas Company (800) Zoning/Permit Assistance/ Code Enforcement Business License (714) Code Enforcement Complaint Line (714) Curb, Sidewalks, Potholes, and Tree Maintenance (714) Fire Prevention (714) Planning & Building (714) N. Broadway #200 Santa Ana, California Tel: Fax: The Vietnamese American Chamber of Commerce of Orange County (VACOC) is a non-profit organization composed of local business owners and corporate representatives throughout Southern California. Our mission is to provide a strong network that allows businesses to advertise, build partnerships, and give back to the greater community. We pledge to help new businesses grow and established corporations to thrive. Through advanced technologies, public The Black Chamber events and philanthropic of Commerce sponsorships, of Orange the VACOC membership County will add value to your company s brand and integrity. The Black Chamber of Commerce of Orange County s mission is to advocate and promote black business and economic development within the public and private sectors, resulting in a sound economic base that Vietnamese American Chamber of Commerce Of Orange County supports the survival and Euclid self-determination Street, Ste. 103 of the African-American community. Garden Grove, CA North Broadway, Suite 302 Santa Ana, CA PHONE: Tel: (714) Fax: (714) office fax Orange County Hispanic Chamber of Commerce The Orange County Hispanic Chamber of Commerce represents the interests of and provides access to Orange County s 30,000 Hispanic-owned businesses. We support the development of these businesses by providing opportunities for networking, legislative advocacy, access to capital, education and training programs E. 4th. St. Suite 160 Santa Ana, CA Tel: Fax: The Vietnamese American Chamber of Commerce of Orange County (VACOC s) mission is to provide a strong network that allows businesses to advertise, build partnerships, and PHONE: give back to the greater community. We pledge to help new businesses grow and office established corporations to thrive. Through advanced technologies, public events and philanthropic sponsorships, fax the VACOC membership will add value to your company s brand and integrity Euclid Street, Ste. 103 Garden Grove, CA Tel: Fax: The Vietnamese American Chamber of Commerce of Orange County (VACOC) is a non-p organization composed of local business owners and corporate representatives througho Southern California. Our mission is to provide a strong network that allows businesses to advertise, build partnerships, and give back to the greater community. We pledge to help businesses grow and established corporations to thrive. Through advanced technologies events and philanthropic sponsorships, the VACOC membership will add value to your company s brand and integrity. Vietnamese American Chamber of Commerce Of Orange County Euclid Street, Ste. 103 Garden Grove, CA
9 city of santa ana 20 Civic Center Plaza, Santa Ana, CA (714) This publication is produced by the City of Santa Ana s Economic Development Division.
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