California Assembly introduces bill to support small business recovery from emergencies

In a recent meeting of the California Senate Business, Professions and Economic Development Committee, lawmakers discussed the critical need for support for small businesses and nonprofits affected by disasters. The focal point of the meeting was Assembly Bill 265, known as the Small Business and Nonprofit Recovery Act. This legislation aims to establish a state-funded program to provide financial assistance to organizations impacted by declared states of emergency, a pressing issue in light of recent devastating wildfires in Southern California.

California is home to over four million small businesses and nonprofits, which employ nearly half of the state's workforce. The bill's author emphasized the urgency of the situation, noting that many businesses are still struggling to recover six months after the wildfires. While federal disaster programs exist, they often leave out many small businesses and nonprofits, particularly those run by minorities and women, who face barriers in accessing necessary resources. The proposed program seeks to fill this gap, ensuring that these organizations can rebuild and continue to serve their communities.

Testimonies from experts highlighted the importance of swift action. Susie Pryor, representing the California Small Business Development Center, shared her experience of helping a town recover from a devastating tornado in Kansas, underscoring the need for immediate support during crises. Jennifer Fearing, from Cal Nonprofits, echoed this sentiment, advocating for the bill as a means to ensure nonprofits can continue their vital work in the community.

The committee also addressed concerns about the bill's focus on declared emergencies, with some members suggesting that future discussions could explore support for businesses affected by construction disruptions. This indicates a recognition of the broader challenges small businesses face beyond natural disasters.

The committee ultimately voted in favor of the bill, moving it forward to appropriations. The discussions reflect a growing acknowledgment of the need for a robust support system for small businesses and nonprofits in California, particularly as the state prepares for future emergencies. As the bill progresses, it represents a significant step toward enhancing the resilience of local economies and communities across California.