Small Business Recovery Fund Act.

Assembly Member Caloza's Small Business Recovery Fund Act establishes a competitive grant program within the Office of Small Business Advocate (OSBA) to assist California small businesses impacted by declared emergencies. The program would allocate 90% of legislatively appropriated funds for grants ranging from $2,500 to $100,000, requiring recipients to provide matching funds through insurance claims, recovery loans, or in-kind contributions.

The legislation directs grant funding toward recovery and rebuilding efforts, including infrastructure upgrades, equipment or business relocation, and enhanced insurance coverage. Eligible small businesses must be current on state taxes, free from bankruptcy proceedings at the time of disaster, and maintain active operations. The program explicitly excludes foundations, gambling and adult entertainment establishments, healthcare facilities, and rental property businesses.

The remaining 10% of appropriated funds would support technical assistance, with 5% allocated to small business assistance centers serving disaster areas and 5% to the Capital Infusion Program for disaster-related capital advisory services. The OSBA director must report to the Legislature on grant outcomes within 180 days of each gubernatorial emergency proclamation. The act contains a sunset provision, repealing these provisions on January 1, 2032.