Assembly Member Caloza's Small Business Recovery Fund Act proposes a $100 million grant program to aid California small businesses and nonprofits affected by state-declared emergencies. The legislation tasks the Office of Small Business Advocate (OSBA) with administering competitive grants ranging from $2,500 to $100,000 for recovery and infrastructure resilience projects.

The bill allocates 90% of funds toward direct grants requiring dollar-for-dollar matching from recipients, who may use insurance claims, Small Business Administration loans, or in-kind contributions to meet this requirement. Grant applications will be evaluated based on recovery plan viability and long-term impact. The remaining funds split equally between the Small Business Technical Assistance Program for disaster area service providers and the Capital Infusion Program for expanded technical support in affected regions.

Eligible recipients include qualifying small businesses and 501(c)(3) nonprofit organizations directly impacted by governor-proclaimed emergencies. The program excludes foundations, charitable trusts, gambling establishments, adult entertainment venues, healthcare facilities, and rental property businesses. Applicants must maintain good standing with state tax authorities and cannot be in bankruptcy or permanently closed.

The OSBA must report to the Legislature within 180 days of each emergency declaration on grant distribution and outcomes. The act includes a sunset provision, repealing on January 1, 2032, though the Legislature may evaluate program effectiveness and consider additional funding based on ongoing disaster recovery needs.