AB 2607 California Assembly · 2025-2026 Regular Session

California Americans with Disabilities Act Small Business Capital Access Loan Program.

Summary

Existing law establishes the California Americans with Disabilities Act Small Business Capital Access Loan Program to assist small businesses in complying with the Americans with Disabilities Act. Existing law requires the Capital Programs and Climate Financing Authority to adopt regulations to establish and regulate new loss reserve accounts for qualified loans made by participating lenders to small businesses for eligible products, as specified, including regulations limiting terms of loans and recaptures from loss reserve accounts to 5 years, as specified. Existing law caps qualified loans under the program at $50,000. Existing law establishes the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund, a continuously appropriated fund to be administered by the authority for the purposes of the program. Existing law prescribes the uses for moneys in the fund, including specified program and administrative expenditures, and limits administrative expenditures to 5% of the initial appropriation plus 5% of all moneys recaptured. Existing law establishes the California Seismic Safety Capital Access Loan Program, which is similar to the California Americans with Disabilities Act Small Business Capital Access Loan Program, to assist residential property owners with and small business owners seismically retrofitting residences and small businesses, as specified. Existing law establishes the California Seismic Safety Capital Access Loan Program Fund, a continuously appropriated fund to be used for the purposes of the program, as specified. This bill would increase the cap for qualified loans under the California Americans with Disabilities Act Small Business Capital Access Loan Program to $250,000. The bill would, as of the operative date of the bill, require the authority to transfer the moneys from the California Seismic Safety Capital Access Loan Program Fund to the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund. The bill would provide that moneys in the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund may additionally be used for financial assistance to eligible projects, as specified. The bill would change the limit for administrative expenditures from the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund to 5% of the initial appropriation plus 5% of all interest earned and moneys recaptured. The bill would require the regulations adopted for the California Americans with Disabilities Act Small Business Capital Access Loan Program to increase the 5-year term and recapture limits described above to 15 years. By transferring money into a continuously appropriated fund, expanding the purposes for which moneys in a continuously appropriated fund may be used, and increasing the amount of moneys that may be expended from a continuously appropriated fund, this bill would make an appropriation.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2026 Last action May 14, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

02/20/26 - Introduced → 03/09/26 - Amended Assembly · 9 edits · Mar 9, 2026

MAJOR

AB 2607 was substantially expanded from a CalSavers retirement savings bill to also include major changes to two small business loan programs in the Health and Safety Code. The California Americans with Disabilities Act Small Business Capital Access Loan Program now has its loan cap increased fivefold from $50,000 to $250,000, absorbs all funds from the Seismic Safety Capital Access Loan Program, gains new uses for fund moneys including direct financial assistance to projects, and extends loss coverage terms from 5 to 15 years. The CalSavers provisions were renumbered but retain their core changes including expanded eligible employer definitions and a new $500-per-employee penalty for continued noncompliance.

SCOPE

The bill now amends Sections 44559.13 and 44559.14 of the Health and Safety Code, adding the California Americans with Disabilities Act Small Business Capital Access Loan Program and the California Seismic Safety Capital Access Loan Program to its scope alongside the existing CalSavers retirement savings provisions.

FISCAL

The qualified loan cap under the ADA Small Business Capital Access Loan Program is increased from $50,000 to $250,000, a fivefold increase that allows small businesses to access significantly more financing for ADA compliance retrofits.

On the operative date, all moneys in the California Seismic Safety Capital Access Loan Program Fund must be transferred to the ADA Small Business Capital Access Loan Program Fund, effectively consolidating the two programs' funding into one.

The ADA program fund may now additionally be used for financial assistance to eligible projects, including loans, loan loss reserves, interest rate reductions, contributions of money, or combinations thereof, as determined by the authority. This is broader than the prior use limited to loan loss contributions and borrower payments.

The administrative expenditure limit for the ADA program fund is changed from 5% of the initial appropriation plus 5% of all moneys recaptured, to 5% of the initial appropriation plus 5% of all interest earned and moneys recaptured. Adding 'interest earned' to the base increases the allowable administrative spending over time.

REQUIREMENT

The term and recapture limits for loss reserve accounts under the ADA program are increased from 5 years to 15 years, meaning lender contributions remain at risk for three times longer before being returned to the fund.

The board is authorized to assess the feasibility of multi-state or regional agreements to administer the CalSavers program and to disseminate information about tax credits available to small business owners for allowing employees to participate in the Saver's Match (successor to the Saver's Credit).

ELIGIBILITY

The CalSavers definition of 'eligible employer' is expanded by removing the exclusion for sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business.

ENFORCEMENT

A new penalty of $500 per eligible employee is added for employers that fail to allow employees to participate in CalSavers after initial penalties have already been assessed. Penalties cannot be imposed more than once every 180 days since the last violation.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Lower · Passed

In committee: Held under submission.

lower

Apr 15, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 7, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 6). Re-referred to Com. on APPR.

lower

Mar 10, 2026

Committee

Re-referred to Com. on B. & F.

lower

Mar 9, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

lower

Mar 9, 2026

Committee

Referred to Com. on B. & F.

lower

Feb 21, 2026

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 0 co-sponsors