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Committee advances bill to create state recovery grants for small businesses and nonprofits after wildfire testimony
Summary
AB 265 would create a state-funded recovery grant program to help small businesses and nonprofits recover from declared emergencies; the Senate Business committee advanced the bill after hearing from disaster recovery practitioners.
Assemblymember Kiley presented AB 265, the Small Business and Nonprofit Recovery Act, proposing a state-administered grant program to provide financial assistance to small businesses and nonprofit organizations impacted by declared states of emergency. The author said federal disaster programs often leave small firms and charities ineligible or face long delays, leaving businesses at risk of permanent closure.
Witnesses included Susie Pryor, regional director, California SBDC, and Jennifer Fearing of CalNonprofits. Pryor described her experience helping small firms recover after a catastrophic tornado in Greensburg, Kansas, and argued a state recovery program would be a ‘‘lifeline’’ to keep small businesses and nonprofits afloat following disasters. CalNonprofits urged the committee to support AB 265 so nonprofits can better serve vulnerable Californians and maintain community services after disasters.
Local chambers of commerce, community foundations, statewide associations and county officials delivered ‘‘me too’’ testimony in support; no organized opposition offered primary witness testimony at the hearing. Senator Archuleta asked whether construction-related business interruptions — for example prolonged construction projects — would qualify. The author replied the bill is tailored to ‘‘declared states of emergency’’ and suggested local programs (e.g., LA Metro business-interruption funds) as models for other interruptions.
The committee passed the bill on a recorded vote and sent it to Appropriations; the clerk recorded the motion ‘‘do pass to Appropriations’’ with a roll-call tally that the chair called 8–0 in favor though several members were noted as absent and the item was placed on call for final attendance.
Why it matters: AB 265 would create a permanent state-level mechanism to speed recovery for businesses and nonprofits after declared disasters, addressing gaps in federal relief and the long-term economic effects of fires and other emergencies.
