GoBiz details $45 million Round 2 of Regional Investment Initiative; sets strict application deadlines

Derek Kirk, senior advisor for economic policy at the Governor’s Office of Business and Economic Development (GoBiz), told webinar participants that GoBiz, in partnership with the Employment Development Department and the Labor Agency, is making approximately $45,000,000 available for Round 2 of the Regional Investment Initiative implementation grants under the Jobs First initiative.

Kirk said the program is a two‑phase competition: in phase 1 regional coalitions submit a notice of intent and pre‑application to establish project clusters; selected finalists are invited to submit closed full applications and may be invited to a pitch/investment summit. “We are making available approximately $45,000,000 in grant funding within the implementation phase round 2 of the RII program,” he said.

Why it matters: GoBiz’s implementation round is intended to move regional activation plans into funded projects that create or preserve jobs in tradable sectors identified in the state economic blueprint. The agency emphasized preserving cluster integrity in scoring so clusters can tell a comprehensive implementation story during pitch sessions.

Key facts and deadlines

- Notice of Intent (NOI): due Nov. 5 at 5:00 p.m. Pacific time. Lead entities may submit only one NOI and the NOI must identify the targeted tradable sector(s) and participating regions. GoBiz will publish the NOI list and will exclude submissions that do not meet guidelines.

- Pre‑application: web form due Dec. 3 at 5:00 p.m.; the form contains eight questions with a 300‑word limit per question.

- Full application: invited finalists must submit full applications by email to regionalinvestment@gobiz.ca.gov by Jan. 16, 2026 at 5:00 p.m. (this is a closed solicitation for invited applicants).

- Full review window will run roughly Jan. 26–Feb. 23; invitations to an investment summit will be sent by about March 2 with a summit planned for mid‑March (date TBA). Final award announcements are expected in July 2026.

Awards, budgets, eligibility and allowable costs

- Total available (Round 2): approximately $45,000,000.

- Period of performance: 24 months with an anticipated start date in August 2026.

- Minimum award per individual project: $500,000. GoBiz said there is no stated maximum per individual project but reserves the right to negotiate reduced award amounts and adjusted deliverables if budget availability requires it.

- Matching funds: no formal match is required, but scoring will consider the applicant’s capital stack and other investors.

- Administrative cap: GoBiz said the administrative cap for the grant program is 10 percent; program‑side staffing and direct service costs (for example, trainers in workforce programs) should be included on the program side rather than as administrative costs.

- Eligible applicants: the applicant organization must be incorporated/registered in California. For‑profit companies are not eligible to apply directly, but may participate as coalition partners and may be contracted by an awarded lead entity to deliver services. GoBiz said it will scrutinize applications that appear to use fiscal sponsorships to make ineligible for‑profit projects effectively eligible.

- Project clusters: each cluster must contain 3–8 aligned and interconnected projects focused on a single tradable sector from the state’s Accelerate or Bet categories; clusters must include at least two types of project categories (ecosystem support, infrastructure, workforce development). Clusters made up solely of workforce development projects (three or more) will not qualify.

- Eligible activities: GoBiz confirmed both market‑relevant research and technology R&D tied to advancing a tradable sector may be eligible. In workforce development projects, supportive costs such as personal protective equipment and participant stipends may be financed; construction contracts should include usual construction‑related procurement and costs within the construction contractor’s budget.

Scoring and selection

Pre‑applications will be scored internally and results shared with the Jobs First Council co‑chairs (Director Myers and Secretary Knox). Selected pre‑app finalists will be invited to submit closed full applications. In response to Round 1 feedback, GoBiz said it will adjust scoring on the full application to reduce fragmentation so clusters have a better chance to present cohesive implementation stories during pitch sessions.

Q&A highlights

- For‑profit participation: Catherine Fuentes, representing a for‑profit child care services firm, asked if a for‑profit may participate without being the lead. Kirk replied that for‑profit firms cannot apply directly but can be partners; an awarded lead entity would run procurement and could contract such firms.

- California incorporation: Justin Salters asked about organizations whose parent is out of state; GoBiz said applicants must be incorporated/registered in California and recommended out‑of‑state organizations partner with a California fiscal sponsor.

- Workforce costs: Daryl Crutchfield asked about PPE and stipends; Kirk confirmed supportive services, PPE and participant stipends are allowable within workforce development projects and that the administrative cap is 10 percent.

Contact and next steps

GoBiz asked applicants to review the RFP and errata posted on the business.ca.gov publications page, submit questions to regionalinvestment@gobiz.ca.gov (questions and answers will be posted publicly), and to watch for the NOI web submission link. The agency reiterated strict adherence to the 5:00 p.m. Pacific deadlines and encouraged applicants to plan for negotiation and potential budget adjustments if awarded.

The webinar recording and the updated RFP (including errata on the timeline) will be posted on the GoBiz publications page on business.ca.gov. The agency expects to post answers to submitted questions on a rolling schedule tied to the deadlines listed above.