Small‑business owners, SBDC and workforce board tell Assembly tariffs, rents and supply shocks are squeezing margins; call for more technical assistance and tax

Owners of microenterprises, representatives of the Los Angeles Regional Small Business Development Center network (LASBDC), and the Southeast Los Angeles County Workforce Development Board (Celico) told the Assembly Committee on Economic Development, Growth and Household Impact in Paramount that rising input and operating costs are squeezing margins and that state action should prioritize technical assistance, disaster readiness, and incentives to hire locally.

Panelists described a mix of long‑running and recent pressures: higher commercial rents, tariff‑driven increases in the cost of imported materials, rising insurance and utility costs, and supply chain disruptions. They said those layers of cost are especially harmful to microbusinesses, single‑person operations and small local suppliers who lack bulk‑buying power.

Pat Nye, leader of the Los Angeles Regional Small Business Development Center Network, told the committee “small businesses are being hit from all sides,” citing rent spikes, higher labor and input costs, and increased unpredictability from natural‑disaster exposure. Nye urged more state funding for small‑business technical assistance programs, including the TAP grants administered by the Office of the Small Business Advocate, which he said are “wildly oversubscribed.”

Sandra Michel, deputy director of the Southeast LA County Workforce Development Board (Celico), described workforce board priorities and results in the region of Artesia, Bellflower, Cerritos, Downey, Hawaiian Gardens, Lakewood, Norwalk and Paramount. Michel said Celico places residents into higher‑wage jobs, provides wraparound supports, and partners with employers on sector pathways; she reported that Celico placed “over 800 residents into quality jobs averaging more than $26 an hour” in the past year and provided more than 300 youth with work experience.

Microenterprise speakers offered practical, on‑the‑ground examples. Alma Marquez, founder and CEO of El Sol Group, highlighted programs that train community residents as promotora‑style economic outreach workers and recommended that government contractors be required to include microenterprise support in procurement strategies for large events (the panel noted opportunities tied to upcoming international events). Marquez also urged “community‑informed outreach” that meets entrepreneurs where they are rather than relying on newsletters.

Jennifer Cox, owner of Mama Osa (a tie‑dye and craft events business), recounted how tariff‑driven and supply‑chain cost increases compressed margins: she said some material costs “doubled,” priced smaller competitors out of importing, and forced smaller suppliers to absorb higher shipping fees. Cox described relying on the SBDC for operations and marketing help and said the network’s support was instrumental when demand and costs surged.

Ariel (Ari) Pei, owner of LabWorks and a part‑time SBDC consultant, urged expanded access to low‑interest financing targeted at cash‑flow gaps, support for local supply‑chain development to reduce dependence on costly imports, and workforce training aligned to small‑business needs. He also emphasized that marketing and operations assistance are needed alongside capital.

Panelists suggested specific policy changes the Assembly could pursue: increasing state technical‑assistance funding to SBDCs and similar providers; creating incentives for local hiring (one committee member referenced a 2022 proposal, AB 1864, that would have provided small local hiring tax credits); authorizing or streamlining eligible training provider list (ETPL) processes so community college and adult school programs are more quickly available to workforce board customers; and offering disaster‑preparedness incentives tied to insurance or premium reductions.

Public commenters reinforced those themes. Adrian Landa, representing a renewable‑energy company in the region, described internship and K‑12 outreach programs at his facility and asked the state to support alternative‑fuel projects that create jobs and training. A nonprofit speaker urged continued state support for children’s mental health programs that the panelists said are part of the broader local economic ecosystem.

Assemblymembers in attendance expressed interest in supporting technical assistance and localized hiring incentives; Chair Gibson indicated precedent for tax‑credit ideas and asked for follow‑up. No formal legislative action was taken at the hearing.

Sources: testimony by Pat Nye (LASBDC), Sandra Michel (Celico), Alma Marquez (El Sol Group), Jennifer Cox (Mama Osa), Ariel Pei (LabWorks); public comment by Adrian Landa.