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Small-business leaders urge expanded technical assistance, regional COLA and targeted affordability zones to stem relocations
Summary
Entrepreneurs and small-business advocates told the Assembly committee that language‑appropriate technical assistance, access to affordable capital and targeted local relief are necessary to stop businesses from relocating and to help owners survive rising costs.
Panelists at the Assembly Committee hearing urged the Legislature to expand technical assistance and make regional adjustments to eligibility for relief programs to retain small firms.
"My name is Dr. Debbie Chen, and I'm the founder and CEO of HydroStasis," Dr. Chen told the committee, describing her San Diego‑area hydration‑monitoring wearable company and the network of local accelerators and mentors that supported product development. Chen said HydroStasis has three issued U.S. patents, completed clinical and freedom‑to‑operate work, sold out an initial consumer product (the Gekko watch) in 2024, and received about $500,000 in non‑dilutive funding from NIH, the U.S. Air Force and university grants. She urged more capital and support for women founders, noting that "only about 2% of venture capital goes to women founded companies" despite higher returns in some studies.
Sven Davison, cofounder and COO of Amai Inc., described manufacturing and tariff challenges while developing an edible cup product. He said his company co‑licensed a machine with Foxconn but faced stacked tariffs (he cited a combined figure of about 210% on the machine) that stalled plans to bring production onshore. He credited local resources — SBDC, Connect, Innovate 78 — with providing legal, accounting and feasibility support.
Jason Paguio, president and CEO of the Asian Business Association of San Diego, summarized a regional study showing elevated relocation intent among small firms: nearly four in 10 local businesses overall are considering or planning to relocate; 51% of Asian‑owned firms reported relocation consideration and 44% of Black‑owned firms did likewise. Paguio urged lawmakers to streamline and expand technical assistance, support regional cost‑of‑living adjustments for eligibility in assistance programs, and pilot "small‑business affordability zones" that could include targeted rent stabilization, tax credits or childcare subsidies for high‑cost neighborhoods. He also noted the usefulness of procurement accelerators that help minority‑owned firms qualify for government contracts.
Juan Carlos Hernandez, president and CEO of the California Southern Small Business Development Corporation, emphasized affordable capital for microloans, saying many small deals (about $100,000 or less) are the hardest to finance and that some alternative lenders charge effective annual rates that can exceed 100%. He described loan‑guarantee work his organization performs with the state iBank and community lenders and thanked Assembly members for attention to small‑business relief.
Panelists and Assembly members discussed bills and proposals cited during testimony, including AB 2019 (procurement/equity measures) and a small‑business recovery measure (referred to in testimony as AB 265 or the Small Business and Nonprofit Recovery Act). Panelists said outreach and distribution to existing on‑the‑ground providers (SBDC, CDFIs) are as important as funding increases.
Assembly members asked about concrete policy levers and praised internship and workforce pathways that connected students to local employers. Entrepreneurs recommended greater clarity in program delivery, more multilingual assistance, and faster access to capital to reduce the risk of business closures and relocations.
