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AB-265 • 2026

Small Business Recovery Fund Act.

Small Business Recovery Fund Act.

Budget Small Business
Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor
Caloza
Last action
Official status
Vetoed
Effective date
Not listed

Plain English Breakdown

The official status indicates the bill was vetoed, but it is unclear if lawmakers later overrode that veto.

Small Business Recovery Fund Act

This vetoed bill would create a state fund to give competitive grants and technical assistance to small businesses hurt by emergencies.

What This Bill Does

  • Creates the Small Business Recovery Fund in the State Treasury if lawmakers approve funding.
  • Requires giving 90% of funds as competitive grants between $2,500 and $100,000 for recovery efforts.
  • Requires businesses receiving a grant to provide an equal amount of matching money.
  • Sets aside 5% of funds for technical assistance centers in disaster areas.
  • Sets aside another 5% of funds for programs that help with capital-related advice.
  • Ends the law on January 1, 2032.

Who It Names or Affects

  • Small businesses directly impacted by a state of emergency or other specified emergencies.
  • The Office of Small Business Advocate (OSBA).
  • Technical assistance centers serving disaster-affected areas.
  • The Legislature, which receives reports on the grant results.

Terms To Know

Appropriation
Money that lawmakers officially set aside for a specific purpose.
Matching funds
An amount of money the grant recipient must provide to equal the size of the government grant.
State of emergency
A formal declaration by the Governor that a crisis or disaster has occurred.

Limits and Unknowns

  • The bill was vetoed, so it did not become law unless lawmakers overrode the veto.
  • No money is available until the Legislature approves an appropriation for the fund.
  • The text does not list every specific type of emergency that qualifies beyond a Governor's proclamation.

Bill History

  1. California Legislative Information

    Vetoed

Official Summary Text

Small Business Recovery Fund Act.