Small Business and Nonprofit Recovery Fund Act.
Under this act, OSBA is required to allocate 90% of the fund's resources towards a competitive grant program that offers financial assistance ranging from $2,500 to $100,000 to qualifying entities. This funding can support various recovery efforts, including infrastructure improvements, equipment relocation, and investment in insurance coverage. Moreover, grantees are expected to match the grant amount dollar-for-dollar, encouraging investment from the businesses themselves. By implementing these measures, the bill seeks to ensure that businesses not only recover from disasters but also evolve toward more resilient operational practices.
Assembly Bill 265, introduced by Assembly Member Caloza, establishes the Small Business Recovery Fund Act. This legislation aims to create a dedicated fund to support small businesses and nonprofit organizations that have been adversely impacted by states of emergency, particularly those caused by severe weather-related and natural disaster events. The bill appropriates $100 million from the General Fund to create the Small Business Recovery Fund, which will be administered by the Office of Small Business Advocate (OSBA). The primary objective is to facilitate recovery and rebuilding efforts in disaster-affected areas, thereby enhancing the resilience and viability of these businesses in the wake of future emergencies.
The act also mandates regular reporting by the OSBA on the utilization of grant funds, ensuring transparency and accountability. The director is required to submit a report to the legislature within 180 days after each state of emergency outlining outcomes of the grants awarded, which could serve as a mechanism for evaluating the program's success and informing any future legislative amendments.
The bill incorporates provisions prioritizing assistance to small businesses owned by minority and disenfranchised groups, reflecting an intent to address social equity in recovery efforts. Critics may express concerns regarding the effectiveness of such programs and the bureaucracy involved in fund distribution, as they may fear that some deserving businesses could be overlooked. Furthermore, the sunset provision repealing the act by January 1, 2032, raises questions about the long-term sustainability of aid for small businesses facing ongoing or repeated disasters.