California establishes $100 million fund for small business disaster recovery

The Assembly Committee on Economic Development, Growth, and Household Impact convened on April 22, 2025, to discuss critical support measures for small businesses and nonprofit organizations in California. The meeting focused on the introduction of a proposed act aimed at establishing a $100 million state-funded program, which would be administered by the Office of the Small Business Advocate. This initiative is designed to provide financial assistance to entities impacted by declared states of emergency.

California is home to over 4 million small businesses and nonprofits, which collectively employ nearly half of the state's workforce. The recent devastating wildfires in Los Angeles County highlighted the urgent need for such support, as many small businesses and nonprofits were severely affected. The committee emphasized the importance of ensuring the livelihoods of these organizations, particularly as they have often stepped up to assist their communities during crises.

During the discussions, it was noted that while federal disaster assistance programs exist, many small businesses and nonprofits struggle to qualify for these resources. Lengthy application processes further delay recovery efforts, leaving many organizations, particularly those owned by people of color and women, without the necessary support to rebuild. The committee underscored the risk of permanent closures for these businesses, which would have detrimental effects on local communities and overall resilience.

The meeting featured testimonies from key stakeholders, including Susie Prior, the regional director of the Central Small Business Development Centers, and Jennifer Fearing, representing Cal Nonprofits. Their insights reinforced the critical need for timely financial assistance, as every dollar invested in small businesses and nonprofits is expected to yield significant returns for the community.

In conclusion, the committee's discussions highlighted the pressing need for a structured financial support system to aid small businesses and nonprofits in California, particularly in the wake of natural disasters and ongoing economic challenges. The proposed act aims to fill existing gaps in support and ensure that these vital organizations can continue to thrive and contribute to their communities.