Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Recovery Small Business topic
No spam. Unsubscribe anytime.
Committee advances AB 265 to create state recovery grants for small businesses, nonprofits after emergencies
Summary
Assemblymember Colosa told senators AB 265 would establish, subject to appropriation, a state‑administered recovery grant program for small businesses and nonprofit organizations damaged by declared states of emergency; witnesses from the California SBDC and CalNonprofits urged funding and partners emphasized underserved owners.
Assemblymember Colosa told the Senate committee AB 265 (Small Business and Nonprofit Recovery Act) would create, upon appropriation, a state‑funded program administered by the Office of the Small Business Advocate to support small businesses and nonprofits hit by declared states of emergency.
Colosa said federal disaster programs often leave many small businesses and nonprofits ineligible or subject them to long delays; a state grant program would provide a more timely safety net, particularly for minority‑, women‑ and underserved‑owned businesses and community nonprofits. Witnesses supporting the bill included Susie Pryor, regional director of the California Small Business Development Center network, and Jennifer Fearing of CalNonprofits. Pryor described standing up rapid response in prior disasters in other states and said a state program can be a “lifeline” that helps communities recover and preserves services. Fearing said the program should use the state’s existing nonprofit designations to preserve eligibility in the face of federal attacks on tax status and stressed nonprofit role in disaster response continuity.
Local government, business and philanthropic groups — including the Los Angeles Area Chamber, California Retailers Association, League of California Cities and California Community Foundation — registered support. Several members asked whether the program could extend to business interruptions caused by construction or long‑term public works; the author replied the proposal targets declared states of emergency but said local models (such as an LA Metro business interruption fund) provide a possible template for future expansion.
The committee voted to pass AB 265 to the Appropriations Committee; the transcript shows a recorded vote and the measure was left on call pending absent members.
