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Assembly committee advances $100 million small-business, nonprofit recovery program
Summary
The Assembly subcommittee voted unanimously to pass AB 265 to appropriations, a bill that would create a $100 million state fund to provide emergency recovery grants to small businesses and nonprofits impacted by declared states of emergency.
Assemblymember Colosa urged the Assembly Economic Development, Growth and Household Impact Committee to approve Assembly Bill 265, a proposal to create a $100,000,000 state-funded recovery program for small businesses and nonprofit organizations affected by declared states of emergency.
The bill would direct funding through the Office of the Small Business Advocate to provide financial assistance to businesses and nonprofits that do not qualify for or are delayed by federal disaster assistance, according to Colosa. "This act would establish $100,000,000 state funded program administered by the office of the small business advocate to provide financial assistance to small businesses and nonprofit organizations impacted by declared states of emergency," she said.
The bill's backers said federal programs often leave gaps in coverage or impose timelines that hamper swift recovery. Susie Pryor, regional director for the Central California Small Business Development Center, testified that the SBDC network has stepped in after disasters to help businesses access bridge loans, navigate recovery systems and rebuild. "AB 265 is a lifeline in the time of extreme emergency for a small business," Pryor said.
Jennifer Fearing, speaking for CalNonprofits, said the bill's definition of qualified nonprofits — including a state designation — is intended to preserve eligibility even if a nonprofit's federal tax status is later challenged. Dozens of business and nonprofit groups registered support during the hearing, including Small Business Majority, California Community Foundation, California Arts Advocates, California Hispanic Chambers of Commerce, the League of California Cities and several Small Business Development Centers across the state.
Committee members offered largely supportive remarks and asked procedural questions; no formal opposition registered in the hearing. The committee took a roll call and moved AB 265 to the appropriations committee on an 8-0 vote.
The bill was described as targeted relief meant to reach businesses and nonprofits that face long waits or ineligibility for federal disaster aid. The committee flagged no amendments during the hearing and placed the measure on call for further consideration in Appropriations.
