Capacity Building Grant

Overview

The Capacity Building Grant provides funding to nonprofit organizations that strengthen small businesses, commercial corridors, and neighborhoods in under-resourced communities throughout the city of San Diego. Through two funding tracks, Small Business Support and Community Growth, the program supports projects that promote economic opportunity, community well-being, and neighborhood vitality in the San Diego Promise Zone, Opportunity Zones, low- to moderate-income (LMI) census tracts, and/or in otherwise under-resourced communities. 

Applicants should review the eligibility requirements below and apply for the funding track that best aligns with their organization's mission and proposed project. Applicants may select only one funding track. Funding is awarded through a competitive application process and is available only to projects serving communities within the city of San Diego limits. Contract duration is for Fiscal Year 2027, concluding June 30, 2027. 

Funding Tracks at a Glance 

Who should apply? We encourage nonprofit organizations who serve businesses and residents in under-resourced communities across San Diego to apply. Ineligible organizations for both tracks include for-profit businesses/entities or any organization located outside of the county of San Diego. 

Small Business Support Track 

The Small Business Support Track funds nonprofit organizations that provide programs and services benefiting small businesses, entrepreneurs, and commercial corridors in under-resourced communities. Funding is intended to strengthen local business ecosystems and expand economic opportunity through activities that directly support small business success. 

Examples of eligible activities include: 

• Business technical assistance 
• Entrepreneur education and workshops 
• Commercial corridor activation 
• Business outreach and engagement 
• Resource development 
• Placemaking initiatives 
• Other programs that strengthen local businesses and neighborhood commercial districts 

Eligibility 

• 501(c)(3) and 501(c)(6) nonprofit organizations 
• Non-personnel expenses only 
• Fiscal sponsors are not permitted 

This funding track is supported through the Small Business Enhancement Program. 

Community Growth Track 

The Community Growth Track funds nonprofit organizations implementing programs and initiatives that strengthen neighborhoods and improve quality of life for residents in under-resourced communities. Eligible projects may include workforce development, youth programming, community engagement, education, health and wellness, financial empowerment, and other community-based initiatives. 

Examples of eligible activities include: 

• Workforce development 
• Youth programming 
• Community engagement 
• Education 
• Health and wellness 
• Financial empowerment 
• Other projects that improve community well-being 

Eligibility 

• 501(c)(3) nonprofit organizations 
• Non-personnel expenses only 
• Fiscal sponsors are permitted 

This funding track is made possible through the City's partnership with California Coast Credit Union. Formerly offered as the San Diego Promise Zone Community Partner Growth Fund, this funding continues to support nonprofit organizations serving under-resourced communities while now operating as part of the Capacity Building Grant Program. 

Application Process 

1. Review the eligibility requirements and determine which funding track best aligns with your organization's mission and proposed project. 
2. Download the application documents listed below and review the required attachments. This online application is available through SeamlessDocs and must be completed in one session. SeamlessDocs is best supported by Chrome or Firefox web browsers. 
3. Complete the application and submit all required documentation by September 15, 2026 at 5:00 pm. 
4. Applications will be reviewed by City staff for completeness and eligibility before being evaluated through a competitive review process. This includes a review of the required documentation listed below. 
5. Funding recommendations will be developed based on application scores and available funding. 
6. Selected applicants will be notified and invited to begin the contracting process. 

All applications will be required to provide the following information: 

• Scope of work, programs and/or services to be provided. 
• Proposed budget to complete scope of work, programs and/or services. 
• Proposed schedule for completing scope of work, programs and/or services. 
• Proposed list of contractors to be used to complete scope of work, programs and/or services. 
• Supplemental documents and disclosures as required by the City’s standard nonprofit contracting provisions. Organizations must be in good standing with the government agencies referenced below.
  • Board of Directors List: Include name, position, term start/end dates, profession/affiliations and brief background information (one-page maximum) 
  • Key Personnel List: Include key information on training, qualifications, and experience (one-page maximum) 
  • Nonprofit Status: Include a copy of IRS Determination Letter 
  • Articles of Incorporation 
  • Printout of Current Status from the Secretary of State website 
  • Printout of Registration of Charities and Fundraisers status from Department of Justice website 
  • Printout of Entity Status Letter from Franchise Tax Board website 
  • Federal IRS Form 990: Copy of most recently submitted Form 990 

  • Financial Statement: Include a copy of your most recent financial or income statement demonstrating your organization’s annual assets and liabilities  

     

Application Now Open 

Please download and use this Excel template to complete the required FY27 Capacity Building Grant Budget Form- LINK HERE. You can find the FY27 Capacity Building Grant Application Questions HERE. Application closes on Tuesday, September 15, 2026, at 5:00 p.m. PDT. 

Selection Process 

Applications will be evaluated using criteria established by the City for each funding track. The evaluation will consider factors such as: 

• Alignment with the selected funding track. 
• Demonstrated community need. 
• Project feasibility and budget reasonableness. 
• Anticipated community impact. 
• For returning applicants: Priority will be given to organizations with a proven track record of success with the Economic Development Department. 
• Priority will be given to independent organizations with modest budgets. 

Funding recommendations are subject to available funding and final approval by the City of San Diego. 

Contracting Process 

Organizations selected for funding must enter into an agreement with the City before beginning reimbursable grant activities. 

Selected applicants will be required to: 

1. Execute a grant agreement with the City of San Diego. 
2. Comply with applicable City requirements. 
3. Complete all reporting requirements throughout the grant period. Failure to comply with the reporting requirements may impact future funding opportunities. Awardees are required to complete two reconciliation reports 
4. Use grant funds only for approved project activities. Budget adjustments maybe be permitted by the approval of City staff. 

Additional contracting instructions will be provided to selected applicants following award notification. 

Estimated Timeline: 

There are two Microsoft Teams information sessions to help applicants understand the application requirements and answer general questions about the program. The first workshop will be held on Thursday, August 13, 2026, from 1:00-2:00 p.m. To register, click here. The second workshop will be held on Wednesday, August 19, 2026, from 11:00 a.m.-12:00 p.m. To register, click here. The presentation slides and recording will be posted once available.

Questions? Contact Us. 

You can contact us for additional information about the Capacity Building Grant Program, one-on-one technical assistance, or for translation of materials in other languages. Deadline for technical assistance from staff is September 14, 2026 at 12:00 pm.

Please contact Viridiana Quintana at VQuintana@sandiego.gov or Nick Stephens at NStephens@sandiego.gov. The Economic Development Department can be reached at sdbusiness@sandiego.gov or by calling 619-236-6700.