AB685 - Small Business Development Technical Assistance.

Amended IN Senate August 21, 2026 Amended IN Senate August 13, 2026 Amended IN Senate June 03, 2026 Amended IN Assembly January 12, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 685 Introduced by Assembly Member Solache (Coauthors: Assembly Members Michelle Rodriguez and Schiavo) February 14, 2025 An act to amend Section Sections 12100.61 and 12100.63 of, and to add Article 7.5 (commencing with Section 12100.70) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of, of the Government Code, relating to economic recovery. LEGISLATIVE COUNSEL'S DIGEST AB 685, as amended, Solache. Small Business Resiliency and Innovation Act. Development Technical Assistance. 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. Existing law also establishes the California Small Business Technical Assistance Program (SB-TAP) within OSBA, under the direct authority of the Small Business Advocate, for the purpose of assisting small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers. Under existing law, OSBA administers the Capital Infusion Program (CIP) pursuant to the SB-TAP, as specified. Existing law sets forth the criteria that an applicant must meet to be eligible to participate in these programs, which can vary depending on whether the applicant is receiving funding from federal or private sources. This bill would revise certain eligibility criteria for the small business technical assistance center grant programs, as specified. The bill would create uniform eligibility requirements for applicants with funding from a nonstate source. The bill would also authorize a group of multiple small business technical assistance centers to apply as a network with a single fiscal agent if those centers are supported by contracts for the same program their active contracts are under the same funding authority. The bill would also require the OSBA to establish standardized performance metrics, reporting requirements, and outcome measures applicable to all grant recipients participating in the SB-TAP and would require the OSBA to monitor grant recipients during the grant performance period to ensure their compliance with SB-TAP requirements, as provided. The bill would include findings and declarations by the Legislature relating to the administration of the CIP and would require the OSBA to report its findings and actions and aggregate program outcomes to the Legislature. This bill would establish the Small Business Resiliency and Innovation Act, which would include findings and declarations by the Legislature relating to the purposes and impacts of the CIP and the SB-TAP. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 12100.61 of the Government Code is amended to read: 12100.61. The Legislature finds and declares all of the following: (a) Small businesses form the core of the California economy and that it is in the interest of the state to increase opportunities and improve access to business and technical resources for entrepreneurs, the self-employed, and microbusiness and small business owners, particularly underserved business groups, including women, minority, and veteran-owned businesses, and businesses in low-wealth, rural, and disaster-impacted communities. (b) The federal government funds and operates a range of technical assistance programs through contracts with nonprofit organizations that commit to serve and support small businesses in California, including the California Small Business Development Center Program, the Women’s Business Center Program, the Veteran Business Outreach Center Program, the Procurement Technical Assistance Center Program, the Manufacturing Extension Partnership, and the Minority Business Development Agency Center Program, and other similar programs. All of these programs provide free or low-cost services to California small businesses to enable their launch and sustained growth. It is in the interest of the state to collaborate with these programs to provide an economic environment in which small businesses can be successful, including participation in a seamless network of federal, state, and nonprofit programs, services, and activities that benefit small businesses. (c) (1) The California Small Business Development Center Program, a component of the federal Small Business Development Center Program, plays a significant role in expanding and supporting California small businesses. There are more than 1,000 small business development centers in the United States and its territories, over 40 of which are located throughout California. (2) The primary role of the California Small Business Development Center Program is to provide technical assistance to the state’s small businesses, including tracking assistance and outcomes that result in a meaningful contribution to the California economy. This program is administered through the federal Small Business Administration. (d) (1) The Women’s Business Center Program plays a significant role in expanding and supporting women-owned small businesses in California. The Women’s Business Center Program was established to provide in-depth, substantive, outcome-oriented business services to women entrepreneurs, both nascent and established businesses, including a representative number of which are socially and economically disadvantaged. (2) The Women’s Business Center Program meets its mission through the award of financial assistance to tax-exempt, private nonprofit organizations to enable them to effect a substantial economic impact in their communities, as measured by successful business startups, job creation and retention, and increased company revenues. This program is administered through the federal Small Business Administration. (e) The Veteran Business Outreach Center Program in California plays an important role in meeting the unique needs of veterans in starting and operating businesses. The program is funded by the federal Small Business Administration’s veterans unit. The Veteran Business Outreach Center Program provides statewide small business consulting and workshops for veteran owners of small businesses, and veterans wishing to start a small business. (f) (1) The Procurement Technical Assistance Center Program plays an important role in helping small businesses access public contract opportunities. Congress authorized the Procurement Technical Assistance Center Program in 1985 in an effort to expand the number of businesses capable of participating in the government marketplace. (2) The Procurement Technical Assistance Center Program is administered by the federal Department of Defense. The program provides matching funds through cooperative agreements with state and local governments and nonprofit organizations for the establishment of procurement technical assistance centers to provide procurement assistance. (3) Procurement technical assistance centers are staffed with counselors experienced in government contracting and provide a wide range of services including classes and seminars, individual counseling, and easy access to bid opportunities, contract specifications, procurement histories, and other information necessary to successfully compete for government contracts. (g) The Hollings Manufacturing Extension Partnership was established in the 1980s as United States manufacturing faced increased competition from other countries. The United States faced key competitive challenges in consumer electronics, steel, and other industries. United States goods production processes were deemed comparatively outdated and innovation stagnated. The program is administered by the National Institute of Standards and Technology, within the Department of Commerce. (h) The Minority Business Development Center Program is administered by the federal Department of Commerce’s Minority Business Development Agency. The program provides a range of services to minority-owned businesses seeking to expand to new markets, both foreign and domestic, as well as a wide range of technical assistance and business services, including business consulting, private equity and venture capital opportunities, facilitating joint ventures, and strategic partnerships. (i) Nonprofit, community-based 501(c)(3) organizations, often funded by financial institutions, corporations, universities and colleges, corporate social responsibility programs, and philanthropy, have emerged to fill gaps in entrepreneurial education and training for microbusinesses and small businesses and entrepreneurs in underserved business groups, and play a critical role in the local small business ecosystems. (j) It is the intent of the Legislature to allow persons who are undocumented to receive consulting and training services and microgrants pursuant to this article. The Legislature finds and declares that this article is a state law that provides payments or assistance for persons who are undocumented within the meaning of Section 1621(d) of Title 8 of the United States Code. (k) The Capital Infusion Program (CIP) is administered by the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development (GO-Biz). SECTION 1. SEC. 2. Section 12100.63 of the Government Code is amended to read: 12100.63. (a) The California Small Business Technical Assistance Program is hereby created within the California Office of the Small Business Advocate. (b) The program shall be under the direct authority of the Small Business Advocate. (c) The purpose of the program is to assist small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers. (d) In implementing the program, the office shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of small businesses in California. (e) An applicant pursuant to this article shall be a small business technical assistance center, including a regional or statewide network, network operating as a group network or as an individual center. (1) A small business technical assistance center operating as a group consisting of centers organized under a coordinating administrative or fiscal entity shall apply by submitting a single consolidated application to the office. The group may apply as a network with an agreement in place between organizations supported by contracts for the same program under the same funding authority. (1) Multiple small business technical assistance centers may apply as a network with a single fiscal agent if the active contracts are under the same funding authority. (2) A small business technical assistance center operating as an individual center shall apply by submitting a single application for that center to the office. (f) The office shall administer the program to provide grants to expand the capacity of small business development technical assistance centers in California that are administered and primarily funded by federal agencies, but shall also include other nonprofit small business technical assistance centers that can demonstrate experience, success, and capacity to expand existing small business administration programs that provide one-on-one confidential consulting and training to small businesses and entrepreneurs in this state. Except as modified by subdivision (l), an applicant shall be eligible to participate in the program if the office determines that the applicant meets all of the following criteria: (1) At the time of applying for funds, the applicant has meets either of the following requirements: (A) The applicant has an active contract with a nonstate funding partner to administer a program in this state, or has received a letter of intent from a nonstate funding partner to administer a small business technical assistance center program in this state within the next fiscal year. A group of programs Multiple small business assistance centers may apply as a network with a single fiscal entity agent if the active contracts are for the same program under the same funding authority. (B) The applicant is currently operating a small business technical assistance center, as defined in subdivision (s) of Section 12100.62, has the intent and ability to continue to administer a center in the state during the grant period of performance, and has operational funding from a nonstate funding source. (2) (A) The applicant provided a plan of action and commitment to utilize the funding to demonstrates the capacity to effectively operate a small business technical assistance program center solely with the contracted nonstate funding partner. nonstate funding, including the local cash match, and to comply with all applicable reporting requirements. (B) If the applicant is a new small business technical assistance center, the applicant must show capacity to effectively operate, including reporting, with only the nonstate funds. (3) The requested funding amount does not exceed the total award specified in the contract with the nonstate funding partner contract, but in any event is no less than twenty-five thousand dollars ($25,000). (4) The applicant seeks funding for one or more years, but no more than five years in duration. (5) The grant agreements authorized by this article are not subject to the model contract provisions developed pursuant to Chapter 14.27 (commencing with Section 67325) of Part 40 of Division 5 of Title 3 of the Education Code. (6) The applicant has a fiscal agent that is able to receive state funds and has demonstrable experience reporting on small business assistance or other programs. funds. (g) The office shall issue a request for proposal for grants under the program, which may contain the following information: (1) The eligibility requirements described in subdivision (e). (2) The available funding range. (3) Funding instruments. (4) The local cash match requirement described in subdivision (f). (5) Operational capacity. (6) The duration of the program. (7) The start date of the program. (8) Narrative requirements. (9) Reporting requirements. (10) Required attachments. (11) Submission requirements. (12) Application evaluation criteria. (13) An announcement of an awards timeline. (14) Requirements to ensure equitable access to publicly funded technical assistance services, including requirements applicable to grant recipients that are membership-based organizations, chambers of commerce, or other [Text truncated for display. Full text available on Congress.gov.]