Small Business Recovery Fund Act.

Assembly Member Caloza, with principal coauthor Solache and several colleagues, advances a Small Business Recovery Fund Act that would create a Small Business Recovery Fund within the State Treasury and establish a competitive Small Business Recovery Grant Program administered by the Office of the Small Business Advocate within GO-Biz. The measure contemplates a limited-term framework, repealing on January 1, 2032, and relies on annual legislative appropriation to fund its activities, with the Office responsible for reporting on grant outcomes after each governor-proclaimed state of emergency.

Under the proposed framework, 90 percent of appropriated funds would be allocated to the small business recovery grant program to provide competitive grants to small businesses directly impacted by a state of emergency proclaimed by the Governor or other specified emergencies, including local emergencies and certain disaster conditions. Five percent would be dedicated to the Small Business Technical Assistance Program and five percent to the Capital Infusion Program, both administered by GO-Biz. The grants would range from $2,500 to $100,000 per award, and grantees would be required to provide a dollar-for-dollar match, with matching contributions potentially satisfied by insurance proceeds, SBA recovery loans, or in-kind contributions.

The grant program would only be open to defined small businesses that meet specified qualifications, while exclusions would apply to foundations and charitable trusts, gambling establishments, adult entertainment establishments, hospitals or nursing facilities, and rental-property businesses. Eligibility would require ongoing tax compliance and certain operational and eligibility conditions, with competitive awards determined by rating criteria that may include the viability of the recovery plan, the applicant’s ability to match funds, and the anticipated efficacy and long-term impact of proposed recovery efforts. Preferences would be given to applicants receiving technical assistance through the Small Business Technical Assistance Program, and retroactive use of funds would be allowed for work already performed in response to the declared disaster, subject to documentation.

Implementation would place OSBA at the center of grant administration, overseeing the competitive process, eligibility determinations, match verification, and disbursements, while GO-Biz would administer the two related programs funded by the act. The Director of the Office of Small Business Advocate would be required to prepare a report detailing grant results for each state of emergency, due within 180 days after proclamation and aligned with relevant reporting requirements. The act’s statutory structure and funding priorities would shape how disaster recovery efforts, resilience investments, and reopening activities are coordinated across state and local emergency periods, within a temporary, sunset framework. The proposed approach foregrounds minority-owned, women-owned, and other disenfranchised small businesses through outreach and assistance priorities, and reflects an explicit linkage to existing GO-Biz programs and the OSBA’s ongoing role in disaster-related economic support.

In the broader policy context, authors describe severe weather and disaster events as generating economic and operational disruption for California small businesses and frame recovery, rebuilding, and resilient infrastructure as essential to sustaining economic stability. The bill’s findings and intent frame the fund as a mechanism to provide direct support to impacted entities, a funding channel for technical assistance and capital-related help, and a structured reporting regime to assess outcomes across emergency periods. Because funding hinges on annual appropriation, the act creates a finite horizon for the program, with operational details and recipient reach shaped by budget decisions, program rules, and the coordination between OSBA and GO-Biz within the state’s disaster-response framework.