WeVote
Log In

Bill

Bill

AB 265

Small Business Recovery Fund Act.

2025-2026 Regular Session Introduced by Mia Bonta and 9 co-sponsors

AB 265 establishes a Small Business Recovery Fund in California, offering grants up to $100,000 to help small businesses recover from state-declared emergencies.

Consideration of Governor's veto pending.
#smallbusinessrecoveryfundact
0
WeVote Research Nonpartisan
Bill Summary · AB 265

Summary of AB 265: Small Business Recovery Fund Act

Purpose and Intent

The Small Business Recovery Fund Act (AB 265) aims to provide financial assistance to small businesses in California that have been adversely affected by state-declared emergencies, including natural disasters. The legislation establishes a framework for a grant program to support recovery and rebuilding efforts, ensuring that small businesses can remain viable and contribute to the state's economic stability.

Key Provisions

  1. Creation of the Small Business Recovery Fund:

    • A fund will be established within the State Treasury, with 90% of appropriated funds allocated for a small business recovery grant program.

  2. Grant Program:

    • Grants will be available to small businesses directly impacted by emergencies proclaimed by the Governor or local authorities.
    • Grant amounts will range from $2,500 to $100,000.
    • Grantees must match the grant amount on a dollar-for-dollar basis, which can include funds from insurance claims or recovery loans.

  3. Allocation of Funds:

    • 5% of the funds will be allocated to the Small Business Technical Assistance Program to support technical assistance centers in disaster-affected areas.
    • Another 5% will go to the Capital Infusion Program to meet increased demand for capital-related assistance in these areas.

  4. Eligibility Criteria:

    • Eligible applicants must be current on state taxes, not in bankruptcy, and must not have permanently ceased operations.
    • Certain businesses, such as gambling establishments, adult entertainment venues, and hospitals, are excluded from receiving funds.

  5. Reporting Requirements:

    • The Director of the Office of Small Business Advocate (OSBA) is required to submit a report to the Legislature detailing the results of the grant funds awarded for each state of emergency.

  6. Sunset Provision:

    • The Act will be repealed on January 1, 2032, unless extended by future legislation.

Impact

  • Targeted Support: The bill prioritizes funding for small businesses affected by recent natural disasters, particularly those referenced in the Governor’s Proclamation of a State of Emergency issued on January 7, 2025.
  • Economic Resilience: By providing financial support and promoting investment in resilient infrastructure, the Act aims to help small businesses recover and adapt to future emergencies.
  • Focus on Disenfranchised Groups: The legislation emphasizes outreach and assistance to small businesses owned by ethnic minorities, women, and other underrepresented populations.

Legislative Status

  • As of October 11, 2025, the bill was vetoed by the Governor, and consideration of the veto is pending. The bill was introduced on May 19, 2025, and has undergone several amendments and legislative actions since its introduction.

This summary provides an overview of AB 265, highlighting its objectives, key provisions, and potential impact on small businesses in California.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.