AB 265: Small Business Recovery Fund Act.

Existing law establishes the Office of Small Business Advocate (OSBA) within the Governors Office of Business and Economic Development, also known as GO-Biz, to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace.

This bill, upon appropriation by the Legislature, would require OSBA to allocate 90% of the moneys appropriated to the Small Business Recovery Fund, which would be created within the State Treasury, for purposes of a small business recovery grant program to provide competitive grants to small businesses, as defined, that are directly impacted by a state of emergency proclaimed by the Governor or other specified emergencies. The bill would require the funds to be used for, among other things, to support recovery and rebuilding efforts, and would require a grantee to match the amount of the grant awarded. The bill would require OSBA to award grants in amounts that range from $2,500 to $100,000, inclusive.

This bill would require OSBA to allocate 5% of the moneys appropriated to the fund to the Small Business Technical Assistance Program administered by GO-Biz, for grants to small business technical assistance centers that provide direct service to disaster-affected areas, and 5% to the Capital Infusion Program administered by GO-Biz, to support increased demand for capital-related technical assistance in disaster areas.

This bill would require the Director of the Office of Small Business Advocate to prepare and submit a report to the Legislature on the results of grant funds awarded for each state of emergency proclaimed by the Governor, as provided.

This bill would repeal the Small Business Recovery Fund Act on January 1, 2032.