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Council directs staff to draft small‑business micro‑grant plan; pauses automatic minimum‑wage increase for one year

3069507 · April 21, 2025
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Summary

After a city business survey and many public comments, Malibu City Council instructed staff to craft a city‑run micro‑stabilization grant program, recommended maintaining Los Angeles County CDBG funding for an existing labor‑exchange project, and paused the automatic July minimum‑wage increase for 12 months.

Malibu City Council heard a wave of public comment about local businesses struggling after the Palisades and Franklin fires and directed staff to draft a short‑term small‑business assistance package focused on rapid cash relief, short‑term regulatory relief and a targeted “Malibu is open” promotion campaign.

Survey findings and proposals: staff presented a city business survey conducted March 28–April 8 that received 100 responses; businesses reported steep revenue declines, staff reductions and urgent liquidity needs. Staff proposed options including (1) a micro‑stabilization grant program (MSGP) with awards in a $5,000–$20,000 range, (2) using federal CDBG funds as a revolving loan/grant and (3) a city‑run program if the council wants more local control.

Council direction: after discussion the council reached a consensus to: (a) keep the city’s current CDBG allocation supporting the Malibu Community Labor Exchange project rather than reallocating the county funds, (b) direct staff to draft a city‑funded micro‑grant program that can be administered quickly and (c) ask staff to return with a specific program design and recommended budget that could be acted on at a near‑term regular meeting. The council also asked staff to engage the Chamber of Commerce to help with outreach and eligibility screening.

Minimum wage pause: councilmembers agreed to pause the planned July 1 automatic index‑based minimum wage increase for 12 months so the city’s wage floor remains at the current level for one year; councilmembers noted the pause is intended to give small employers immediate breathing room, while employers remain free to pay higher wages at their discretion.

Regulatory and promotional relief: councilmembers requested staff bring back regulatory relief options — temporary expansions of allowed temporary use permits, expedited sign approvals and streamlined timelines for minor tenant improvements — and asked the Chamber to draft a “Malibu is open” promotion plan that the city could help fund.

Next steps: staff will draft a program and bring a detailed proposal with budget options to the next available regular council meeting. The council requested the draft include eligibility criteria (suggested award range $5,000–$20,000), a rapid application and review workflow and reporting and anti‑fraud measures.

Ending: City staff said they will coordinate outreach with the Chamber of Commerce and prepare the MSGP draft and an implementation schedule for council review; councilmembers emphasized speed and clarity to get grants into local businesses’ hands as quickly as practical.