Small Business and Nonprofit Recovery Fund Act.

Assembly Member Caloza's Small Business and Nonprofit Recovery Fund Act establishes a comprehensive grant program within the State Treasury to support California small businesses and nonprofit organizations affected by declared states of emergency. The Office of Small Business Advocate would distribute 90% of appropriated funds through competitive grants ranging from $2,500 to $100,000, with recipients required to provide matching funds through insurance claims, recovery loans, or in-kind contributions.

The legislation creates specific parameters for fund usage, allowing recipients to invest in recovery efforts, infrastructure improvements, business relocation within California, and enhanced insurance coverage. Eligible entities include small businesses as defined by state law and qualified nonprofit organizations with 501(c)(3) status, while explicitly excluding foundations, gambling establishments, adult entertainment venues, healthcare facilities, and rental property businesses. Applicants must maintain good standing with state tax obligations and cannot be subject to bankruptcy proceedings or federal funding restrictions.

The remaining 10% of appropriated funds would be split equally between the Small Business Technical Assistance Program and the Capital Infusion Program to provide specialized support in disaster-affected areas, with particular focus on businesses owned by ethnic minorities, women, and other underserved populations. The Office of Small Business Advocate must report to the Legislature within 180 days of each gubernatorial emergency proclamation on grant outcomes, and the program would sunset on January 1, 2032.