AB 265 California Assembly · 2025-2026 Regular Session

Small Business Recovery Fund Act.

Summary
Existing law establishes the Office of Small Business Advocate (OSBA) within the Governor's Office of Business and Economic Development, also known as GO-Biz, to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace. This bill, upon appropriation by the Legislature, would require OSBA to allocate 90% of the moneys appropriated to the Small Business Recovery Fund, which would be created within the State Treasury, for purposes of a small business recovery grant program to provide competitive grants to small businesses, as defined, that are directly impacted by a state of emergency proclaimed by the Governor or other specified emergencies. The bill would require the funds to be used for, among other things, to support recovery and rebuilding efforts, and would require a grantee to match the amount of the grant awarded. The bill would require OSBA to award grants in amounts that range from $2,500 to $100,000, inclusive. This bill would require OSBA to allocate 5% of the moneys appropriated to the fund to the Small Business Technical Assistance Program administered by GO-Biz, for grants to small business technical assistance centers that provide direct service to disaster-affected areas, and 5% to the Capital Infusion Program administered by GO-Biz, to support increased demand for capital-related technical assistance in disaster areas. This bill would require the Director of the Office of Small Business Advocate to prepare and submit a report to the Legislature on the results of grant funds awarded for each state of emergency proclaimed by the Governor, as provided. This bill would repeal the Small Business Recovery Fund Act on January 1, 2032.
Bill status vetoed 4 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Aug 2025
Assembly Passage
Jun 2025
Senate Passage
Sep 2025
Vetoed
Oct 2025
Introduced Jan 17, 2025 Vetoed Oct 11, 2025
Maddy AI version diff · 6 comparisons

What changed between versions

04/21/25 - Amended Assembly 05/23/25 - Amended Assembly · 4 edits · May 23, 2025
MODERATE
The May 23 amendment to AB 265 makes the Small Business and Nonprofit Recovery Fund's operations conditional on a future legislative appropriation, rather than operating immediately upon the bill's enactment. It also broadens the definition of eligible nonprofit organizations by removing the 'private' qualifier and simplifying the tax-exempt status language, and corrects a program name from 'Capitol Capital Infusion Program' to 'Capital Infusion Program.'
Scope change
The bill's scope is effectively narrowed by making fund operations conditional on a future legislative appropriation. While Section 12100.82 still states that $100,000,000 is appropriated, the operational provisions now require the Legislature to appropriate funds before OSBA can allocate or administer them, adding a layer of legislative control over when the fund actually becomes active.
FISCAL

Section 12100.83(a) now begins with 'Upon appropriation by the Legislature for purposes of this article,' making OSBA's allocation and administration of the fund contingent on a legislative act of appropriation rather than automatic upon enactment. The digest's appropriation line also changed from 'yes' to 'no,' reflecting that the bill no longer contains an immediate, unconditional appropriation.

ELIGIBILITY

The definition of 'qualified nonprofit organization' in Section 12100.85(a)(2) was simplified. The old version required a 'private, nonprofit organization that qualifies for exempt status under Section 501(c)(3) of the United States Internal Revenue Code of 1986.' The new version simply requires 'a nonprofit organization that is either exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code or exempt from state income taxation under Section 23701d of the Revenue and Taxation Code,' removing the 'private' qualifier and the 'qualifies for exempt status' language, which slightly broadens who can apply.

TECHNICAL

The program name in Section 12100.88(a)(2) was corrected from 'Capitol Capital Infusion Program' to 'Capital Infusion Program,' removing the erroneous word 'Capitol.'

The vote requirement in the digest was clarified from '2/3' to '2/3 majority.'

Floor votes · Senate Sep 11, 2025 · Assembly Jun 3, 2025

How they voted

400
Passed
Total votes 40
Sep 11, 2025
D Democratic30
30 Yea
100% Yea
R Republican10
10 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
30
Key actions
9
Committee
8
Amendments
8
Jan 22, 2026
Vetoed
Consideration of Governor's veto stricken from file.
lower
Oct 11, 2025
Vetoed
Consideration of Governor's veto pending.
lower
Oct 11, 2025
Vetoed
Vetoed by Governor.
lower
Sep 12, 2025
Lower · Passed
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3370.).
lower
Sep 12, 2025
Introduced
In Assembly. Concurrence in Senate amendments pending.
lower
Sep 11, 2025
Upper · Passed
Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2930.).
upper
Aug 29, 2025
Upper · Passed
Read second time and amended. Ordered returned to second reading.
upper
Aug 29, 2025
Introduced
From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).
upper
Aug 18, 2025
Committee
In committee: Referred to suspense file.
upper
Jul 7, 2025
Upper · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 7). Re-referred to Com. on APPR.
upper
Jun 26, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
upper
Jun 11, 2025
Committee
Referred to Com. on B. P. & E.D.
upper
Jun 3, 2025
Assembly · Passed
Assembly Vote: pass (78-0)
assembly
Jun 2, 2025
Lower · Passed
Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1899.)
lower
May 23, 2025
Lower · Passed
Read second time and amended. Ordered returned to second reading.
lower
May 23, 2025
Introduced
From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 23).
lower
May 7, 2025
Committee
In committee: Set, first hearing. Referred to APPR. suspense file.
lower
Apr 22, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 22). Re-referred to Com. on APPR.
lower
Apr 22, 2025
Committee
Re-referred to Com. on E.D., G., & H.I.
lower
Apr 21, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on E.D., G., & H.I. Read second time and amended.
lower
Feb 10, 2025
Committee
Referred to Com. on E.D., G., & H.I.
lower
Jan 18, 2025
Lower · Passed
From printer. May be heard in committee February 17.
lower
1 primary · 9 co-sponsors

Sponsors