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    AB-265
    Budget & Economy

    Small Business and Nonprofit Recovery Fund Act.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Establishes a state fund to provide emergency recovery grants up to $100,000 for disaster-affected businesses and nonprofits.
    • Requires grant recipients to match awarded funds dollar-for-dollar through insurance claims or other sources.
    • Allocates 10% of funds for technical assistance to small businesses in disaster-affected areas.
    • Prioritizes funding for minority-owned and women-owned businesses affected by disasters.

    Summary

    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.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Hearing scheduled for , 1021 O Street, Room 2100
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 265 Caloza Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Economic Development, Growth, And Household Impact Hearing
    Assembly Committee
    Assembly Economic Development, Growth, And Household Impact Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Contacts

    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 21 row(s) selected.
    Page 1 of 5
    Select All Legislators
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Bill Author
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Mia BontaD
    Assemblymember
    Bill Author
    Profile
    Mike FongD
    Assemblymember
    Bill Author
    Profile
    Blanca PachecoD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Lola Smallwood-CuevasD
    Senator
    Committee Member
    Profile
    Jessica CalozaD
    Assemblymember
    Bill Author
    Profile
    Robert GarciaD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Jose SolacheD
    Assemblymember
    Bill Author
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Jessica Caloza
    Jessica CalozaD
    California State Assembly Member
    Jose Solache
    Jose SolacheD
    California State Assembly Member
    Co-Authors
    Dave Cortese
    Dave CorteseD
    California State Senator
    Mike Fong
    Mike FongD
    California State Assembly Member
    Robert Garcia
    Robert GarciaD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Blanca Pacheco
    Blanca PachecoD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Mia Bonta
    Mia BontaD
    California State Assembly Member
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

    Latest Voting History

    View History
    June 2, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    790079PASS

    Key Takeaways

    • Establishes a state fund to provide emergency recovery grants up to $100,000 for disaster-affected businesses and nonprofits.
    • Requires grant recipients to match awarded funds dollar-for-dollar through insurance claims or other sources.
    • Allocates 10% of funds for technical assistance to small businesses in disaster-affected areas.
    • Prioritizes funding for minority-owned and women-owned businesses affected by disasters.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Jessica Caloza
    Jessica CalozaD
    California State Assembly Member
    Jose Solache
    Jose SolacheD
    California State Assembly Member
    Co-Authors
    Dave Cortese
    Dave CorteseD
    California State Senator
    Mike Fong
    Mike FongD
    California State Assembly Member
    Robert Garcia
    Robert GarciaD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Blanca Pacheco
    Blanca PachecoD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Mia Bonta
    Mia BontaD
    California State Assembly Member

    Summary

    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.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Hearing scheduled for , 1021 O Street, Room 2100
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 265 Caloza Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Economic Development, Growth, And Household Impact Hearing
    Assembly Committee
    Assembly Economic Development, Growth, And Household Impact Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Latest Voting History

    View History
    June 2, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    790079PASS

    Contacts

    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 21 row(s) selected.
    Page 1 of 5
    Select All Legislators
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Bill Author
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Mia BontaD
    Assemblymember
    Bill Author
    Profile
    Mike FongD
    Assemblymember
    Bill Author
    Profile
    Blanca PachecoD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Lola Smallwood-CuevasD
    Senator
    Committee Member
    Profile
    Jessica CalozaD
    Assemblymember
    Bill Author
    Profile
    Robert GarciaD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Jose SolacheD
    Assemblymember
    Bill Author
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member