Transcript Highlights:

• In previous Congresses, I worked with then-Representative Sablan to establish an SBDC center in CNMI,
• CONGRESSES, I WORKED WITH THEN REPRESENTATIVE SABLAN TO ESTABLISH AN SBDC CENTER IN CNMI, AND I ALSO
• In September 2024, America's SBDCs, in partnership with Google, launched America SBDC AI, which provides
• The AI for Main Street Act directs Small Business Development Centers, SBDCs, to provide counseling,
• Madam Speaker, H.R. 5764 will give small businesses the AI resources and tools directly for the SBDCs

Bills: HB5764 , HB5763 , HB1663 , HR659 , HB5784 , HB5788 , HB3496

Keywords: AI for Main Street Act, artificial intelligence, small business, small business development centers, SBDC, Small Business Act, business technology, digital transformation, cybersecurity, data protection, intellectual property, regulatory compliance, business training, entrepreneurship, technology adoption, AI literacy, outreach, main street businesses, Main Street Parity Act, Small Business Investment Act of 1958

Transcript Highlights:

• SBDC is the only California Small Business Support Organization that goes through a rigorous, SBDC is
• But SBDC taught me these valuable lessons, and it showed me the path. SBDC took me to...
• So what I'm hearing is: keep supporting SBDC, SBD, R&D through SBDC. And I'll second that on SBDC.
• It was through the SBDC.
• It was through the SBDC.

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact held an informational hearing focused on the California Small Business Development Center (SBDC) Network and its role in helping small businesses access capital, recover from disasters, and scale innovative companies. Chair Salas and Vice Chair Castillo opened by emphasizing the importance of small businesses to California’s economy and noting recent passage of AB 685, described as a small business resiliency and innovation measure. Witnesses from multiple SBDC regions and business owners testified about the network’s statewide reach, confidentiality, multilingual advising, and partnerships with universities and state agencies. Panelists described SBDC’s work in three main areas: disaster recovery, startup and innovation support, and capital access. Testimony highlighted SBDC assistance after major disasters such as the Camp Fire, Dixie Fire, San Diego floods, and the Los Angeles fires, including help with insurance claims, grant applications, debt restructuring, and reopening businesses. Business owners from Altadena and Sacramento shared personal stories of how SBDC guidance, grants, and connections helped restore operations, preserve jobs, and navigate crises. Another panel focused on technology startups and the “valley of death,” explaining how SBDC helps founders with customer discovery, grant strategy, intellectual property, and financing; examples included a mobility-tech company and a biodegradable plastics startup that secured major grants, investment, and jobs with SBDC support. A third panel focused on access to capital, with SBDC staff explaining lending options, state loan programs, and finance centers that package loans and match businesses with lenders. They said many small businesses need less than $100,000 and often turn to high-cost alternatives without guidance; SBDC helps them refinance and secure better terms. A beverage company founder described using SBDC to move from a failed public affairs firm to launching a tequila brand, raising capital, and building distribution. Members asked about barriers facing immigrant-owned businesses, disaster aid gaps, and regulatory burdens; SBDC representatives said their services are confidential, available to eligible businesses regardless of immigration status, and designed to connect clients to whatever public or private resources exist. No formal vote was taken at the hearing, and the meeting ended after public comment with the chair urging continued funding for SBDC and related small business support programs.

Transcript Highlights:

• Northern California SBDC. We have Pat Nye, Regional Director of Los Angeles SBDC.
• And SBDC has helped me.
• So what I’m hearing is: keep supporting SBDC, SBD, R&D through SBDC. And I’ll second that on SBDC.
• So what I’m hearing is: keep supporting SBDC, SBD, R&D through SBDC. And I’ll second that on SBDC.
• It was through the SBDC.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• We are big fans of our SBDC, so thank you. Next, we're going to go with Jennifer Cox. Hi, everyone.
• So I started working with Ari and the SBDC prior to me getting laid off in 2020.
• So I just wanted to reiterate how important my relationship with the SBDC is.
• is also you know things like things like SBDC is.
• You know, that's an open offer from all of the SBDCs.

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact held an informational hearing in Paramount as part of its “Pocketbook Tour,” focused on affordability, cost pressures, and household impacts in Los Angeles County. The first panel centered on workers and learners, with testimony from the UCLA Labor Center and the Southeast Los Angeles County Workforce Development Board. Speakers described how rising living costs, tuition, and low wages force many students to work long hours, often in unrelated, low-wage jobs, while struggling with food, rent, bills, anxiety, and limited financial aid. Recommendations included expanding state-funded work study, creating a statewide internship tax credit for small businesses, improving financial aid formulas to reflect regional cost of living, increasing flexibility for students, and strengthening worker-rights education and career pathways. The second panel focused on microbusinesses and small business affordability. Testimony from microenterprise advocates, the Los Angeles Regional Small Business Development Center Network, and local business owners described rising commercial rents, labor costs, tariffs, supply chain disruptions, insurance, utilities, and disaster-related pressures as major threats to small businesses. Witnesses emphasized that small businesses are central to local economies and asked the state to expand technical assistance, low-interest financing, disaster support, supply-chain development, and community-based outreach. They also urged more intentional support for microbusinesses and home-based entrepreneurs, including networks that connect them to resources and help them build collective buying power. Committee members asked about possible state actions, including tax credits for hiring local workers or interns, support for trades and apprenticeships, and ways to partner more closely with SBDCs and chambers of commerce. Public comment echoed the hearing themes, with speakers highlighting student hardship, nonprofit mental health funding, renewable energy jobs and internships, and the need for state support for clean-energy incentives. No formal votes were taken; the hearing concluded with closing remarks and adjournment at 11:05 a.m.

Transcript Highlights:

• We are one of eight pilot programs in the nation, and that has now turned into the SBDC network.
• You know, there's an SBDC in every state and territory.
• There's 63 total SBDCs, and I will tell you, the Florida SBDC shines when it comes to all the other states
• And we're not going to go anywhere as a Florida SBDC network.
• So with that, you know, I say our small businesses are heroes, not the Florida SBDC network.

Committee: Senate Commerce and Tourism

Summary: The Committee on Commerce and Tourism convened with several members present and Senators DiCeglie and McClain excused. The committee first heard a presentation from Greg Britton, State Director of the Florida Small Business Development Center Network, who described the network’s statewide small-business assistance, including startup support, export and contracting help, disaster recovery, and rural outreach. He highlighted reported 2023 impacts such as $3.9 billion in sales generated, $575.9 million in government contracts, $346.2 million in capital, and support for 2,009 new businesses, including 130 manufacturing firms over the past two years. Members asked about comparisons with SCORE and about measuring rural success, with the chair suggesting jobs and wages in rural areas would be useful metrics; Britton said he could provide job data but was unsure about wage information. The committee then took up SB 320 by Senator Gates, which creates a five-year demonstration project for an alternative licensure pathway for surveyors and mappers. The bill would allow a “first-step” probationary license based on industry certification, apprenticeship, recommendation from a licensed Florida surveyor, and passage of the Department of Agriculture exam within the five-year period, without requiring a four-year degree. Senators asked about the labor shortage, education requirements, foreign workers, and moral character standards. Gates said the shortage is chronic and worsening, the bill has no degree requirement, and anyone meeting the qualifications could proceed regardless of visa status. The committee voted to report SB 320 favorably. Next, the committee considered SB 316 by Senator Berman, which authorizes series limited liability companies in Florida and sets rules for how Florida and foreign series LLCs may operate and transact business in the state. Berman explained that the bill is intended to let businesses isolate liabilities across separate series while providing clearer rules for Florida citizens and businesses dealing with such entities. There were no substantive questions, one appearance form in support, and the committee voted to report SB 316 favorably before adjourning.

Transcript Highlights:

• It sounds like you're working with the Grant Resource Center and the SBDC so far.
• So SBDC is practical. They do business... Duplicative? Thank you for that question.
• So SBDC is practical. They do business coaching. And I don't want to undersell it.
• There's just not an attention right now with Commerce or with SBDC.
• With SBDC.

Summary: The Senate Finance Committee met with a quorum, approved the minutes from the prior meeting, and heard budget presentations from the Secretary of State, the Attorney General, and the State Auditor. The Secretary of State’s office described its FY27 budget, emphasizing efficiency gains from technology, election security work, and business services. It said it is operating with fewer staff than a decade ago, but rising costs and outdated statutory fees are creating deficits in service of process and other operations. The office asked the committee to consider either increasing fees or allowing it to retain a larger share of business-service revenue, and it also proposed creating an Office of Entrepreneurship to help small businesses navigate state government, grants, permits, and related services. Committee members questioned the Secretary of State’s office about fee increases, the current 50-50 split of certain revenues with general revenue, and whether the proposed entrepreneurship office would duplicate existing services. The office said it would complement, not replace, Commerce, SBDC, or grant programs, and would report metrics and policy recommendations to the legislature. The Attorney General then requested a one-time $2 million special revenue appropriation to hire additional lawyers and support staff, citing increased litigation, federal and state legal work, and the need to defend new laws. He also discussed embedded DMV lawyers handling DUI revocation hearings and said the arrangement costs the office just over $200,000. The State Auditor reported that his office is largely self-funded through special revenue and said he wants to reduce reliance on general revenue over time. He highlighted savings from renegotiated leases and an open government contract, discussed the need for more auditors in the Chief Inspector’s Division, and described fraud recovery and P-card operations. A major topic was delinquent land sales: the auditor said the office sold about 17,000 parcels last year and believes online bidding and better marketing could generate substantially more revenue, with the surplus potentially shared among counties, the state, and other programs. Members also asked about securities fee changes, fairness hearings, fire department audits, IT/cybersecurity, and how surplus proceeds from delinquent land sales should be handled. The committee adjourned after the presentations and questions.

Transcript Highlights:

• Sylvia Ma at SBDC. Dr. Ma became a close mentor and then an angel investor and then a dear friend.
• Of course, you're just highlighting why we love the SBDC and the work they do throughout our state of
• And the work that the SBDC does is invaluable in our communities.
• Reach out to SBDC and talk to Bobby Aylman because Bobby has some amazing connections worldwide.
• Thank you for your thoughts and insights and just sharing how helpful SBDC has been.

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact held an informational hearing in San Diego focused on “Making Sense of California’s Economy: Real Cost Pressures and Household Impacts Facing San Diego.” Chair Salas and Assemblymember Darshana Patel opened by emphasizing affordability, housing, and the importance of bringing state policy discussions into the community. The first panel featured leaders from Cal State San Marcos and the San Diego Regional Economic Development Corporation, who described the region’s innovation ecosystem, the university’s role in social mobility and workforce development, and the importance of partnerships with K-12 schools, community colleges, military installations, and industry. They also highlighted regional strengths in life sciences, aerospace and defense, advanced manufacturing, clean energy, and venture-backed innovation, while warning that housing costs, federal research cuts, permitting delays, and small-business fragility threaten growth and talent retention. Committee members asked about collaboration among higher education institutions and what state policy changes could help. Panelists said the region’s universities are complementary rather than competitive and stressed the value of public-private partnerships, social innovation, and aligning academic programs with employer needs. On policy, they urged faster permitting, possible regulatory sandboxes, stronger research investment, support for cross-border trade and manufacturing, and more housing affordability to keep workers in the region. The second panel centered on small business and entrepreneurship, with testimony from Hydrostasis founder Dr. Debbie Chen, Amai co-founder Sven Davison, and Asian Business Association San Diego CEO Jason Pagal. Chen described building a hydration-monitoring wearable, the barriers women founders face in accessing capital, and the importance of SBDC, Stella Foundation, and university internship support. Davison described Amai’s edible cup business and how tariffs, supply-chain costs, and financing constraints forced the company to pivot manufacturing plans. Pagal presented survey data showing high relocation intent, difficulty hiring, and low confidence among businesses, and recommended expanded technical assistance, regional cost-of-living adjustments, and small-business affordability zones. During questioning, members discussed targeted procurement and local incentive models, the role of SBDC and other support networks, and how to better tailor state programs to local conditions. Public comment came from the California Southern Small Business Development Corporation, which stressed that access to affordable capital remains a major challenge and noted the volume of loan guarantee requests coming from San Diego. No formal votes were taken; the hearing concluded with closing remarks from both members underscoring the need to use local testimony to shape future state policy and support California’s economy, families, and small businesses.

Transcript Highlights:

• And I've since received grants from the SBDC for marketing, connected with the California Manufacturing
• Of course, you just highlighted why we love the SBDC and the work that they do throughout our state of
• So organizations like we both mentioned, SBDC, and specifically I sit on the board. who specifically
• Reach out to SBDC and talk to Bobby Adelman, because Bobby has some amazing connections worldwide.
• Thank you for your thoughts and insights and just sharing how helpful SBDC has been.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• The Iowa SBDC fosters innovation, strengthens local economies, and drives small business success.
• Hosted by Iowa State University, the Iowa SBDC collaborates with various partners to provide tailored
• Often the reason for declaration is something that SBDCs could help with proactively if more guidance
• That is why we have utilized the long-standing success of the SBDC network to come alongside the FAST
• I know the southeast area is very... strong in the SBDC network.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: SBIR, STTR, Innovate Act, small business, innovation, legislative reforms, economic growth, funding, technology transfer

Summary: The meeting focused on the Small Business Innovation Research and Small Business Technology Transfer Programs (SBIR-STTR), emphasizing the critical reforms necessary to enhance their effectiveness. Chair Ernst introduced the Innovate Act to streamline processes, ensuring funding is awarded based on merit and addressing existing abuses within the system. The discussion was robust, with numerous members expressing concerns about phase transitions and the need for targeted funding to support impactful technological innovations. The conversation also highlighted the program's importance in fostering economic growth, particularly for small businesses in rural areas, and the urgency for legislative changes as the program's authorization approaches expiration.

Transcript Highlights:

• We are big fans of our SBDC, so thank you. Next, we're going to go with Jennifer Cox. Hi, everyone.
• And I work very closely with him with the SBDC.
• So I started working with Ari and the SBDC prior to me getting laid off in 2020 and from that point has
• So I just wanted to just reiterate how important my relationship with the SBDC is.
• So every Assemblymember in our state has an SBDC that covers their region and there are lots of other

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• And it is reserved exclusively for the five regional SBDC networks.
• Reserved exclusively for the five regional SBDC networks.
• My journey with the SBDC started as a small business owner.
• Over the past three years, the California SBDCs have helped development.
• We have as well with SBDCs.

Summary: The subcommittee heard an informational update from the Governor’s Office of Business and Economic Development on the state’s Jobs First economic development strategy and related budget requests. Go-Biz described its regional planning process, priority sectors such as ag-tech, space defense, life sciences, and semiconductors, and requests including an extension of the CalCompetes tax credit, support for export promotion, additional film commission staff, innovation and emerging technology capacity, and a California brand campaign. Members questioned the campaign’s purpose, with some supporting efforts to counter misinformation about California and others warning it should not obscure regulatory and business-climate concerns. Go-Biz said the campaign would be nationally focused, could include business attraction efforts, and was intended to complement—not replace—policy work on permitting and workforce development. The item was informational only. The committee then heard from the California Office of the Small Business Advocate on the California RISE program, the Performing Arts Equitable Payroll Fund, and the Technical Assistance Program/Capital Infusion Program. CalOSBA reported that California RISE’s first round awarded $16.9 million to 61 employment social enterprises, which collectively increased revenue, secured contracts, and employed thousands of people facing barriers to work; a second round is being launched with a new administrator and expanded services. For the performing arts payroll fund, the office said all 100 awardees had been paid, but demand far exceeded available funding, and the program was oversubscribed within days. California for the Arts testified that the sector remains fragile after COVID and urged statutory changes to simplify eligibility and stretch dollars further. SBDC representatives described TAP/SIP as a statewide network supporting small businesses, capital access, and disaster recovery, emphasizing their role in underserved communities and the leverage of federal matching funds. Committee members focused on whether these programs produce durable outcomes and reach smaller or disadvantaged businesses. Questions centered on long-term job retention in California RISE, outreach to ethnic and community media in the civic media program, and whether TAP/SIP are accessible to entrepreneurs with limited capital or capacity. CalOSBA and its partners said they rely heavily on local community organizations for outreach, provide one-on-one counseling and training, and are working to collect more longitudinal data. The committee also discussed the film and television tax credit program, for which Go-Biz requested funding for three permanent positions and ongoing program support. Film Commission staff said the expanded program is tracking demographic and career-pathway data, with most productions opting into new diversity provisions, and that a formal report to the Legislature is expected in 2027. The item concluded without a vote, as the hearing was for oversight and budget discussion.

Transcript Highlights:

• And it is reserved exclusively for the five regional SBDC networks.
• My journey with the SBDC started as a small business owner.
• We have as well with SBDCs.
• And in those moments, SBDCs have supported more than 23,000 businesses.
• I know the SBDC has done— I'm more familiar with that program than anything else.

Summary: The subcommittee heard an overview from Go-Biz Director D.D. Myers on the administration’s economic development strategy, centered on the California Jobs First framework. Myers described regional planning across 13 regions, the Jobs First Council, and pilot sectors including ag-tech, space and defense, life sciences, and semiconductors. She also outlined budget requests for CalCompetes, CalExport, the California Film Commission, innovation/emerging technologies, and the California Civic Media Fund, along with the new California brand campaign. Committee members raised questions about misinformation about California, regulatory burdens, tourism versus broader economic messaging, and how the brand campaign would highlight underrepresented communities. No vote was taken; the item was informational. The committee then reviewed CalOSBA’s work on small business support, including California RISE, the Performing Arts Equitable Payroll Fund, and TAP/SIP technical assistance and capital infusion programs. CalOSBA reported that California RISE’s first cohort awarded $16.9 million to 61 employment social enterprises, with growth in revenue, contracts, and jobs; the performing arts payroll fund paid all 100 recipients but was heavily oversubscribed; and TAP supported more than 112,000 businesses in the past year, helping leverage federal and local funds. Testimony from program partners emphasized the importance of small business counseling, community-based outreach, and support for arts organizations facing post-pandemic and AB 5-related cost pressures. Senators pressed for more data on long-term job retention, better outreach to smaller and ethnic media, and possible program changes to speed grants and stretch funding further. Finally, the committee heard Go-Biz’s request for additional staff and funding for the California Film and Television Tax Credit Program. Staff said the request would support application review, DEIA implementation, and data tracking. The Film Commission reported that about 147 productions had been approved and roughly 90% were opting into the new diversity provisions, with career pathways reporting to include demographic and participation data and a future report expected in 2027. Senators asked about accountability, apprenticeship and internship hours, and whether the program was producing real career pathways and inclusive hiring outcomes. The item remained informational, with no vote or action taken during the hearing.

Transcript Highlights:

• our federal partners and, as well, with our state partners, going out with the Florida Chamber, the SBDC
• able to stick to that on average, with our state partners going out with the Florida Chamber, the SBDC
• We're going with the SBDC, with the Florida Chamber.
• That's why the 6% rate is tied to the SBDC counseling.
• We're going to look at every opportunity that the SBDC has to try to help. I hope that helps me.

Summary: The Natural Resources and Disaster Subcommittee met to continue its review of hurricane impacts and state response. The committee first heard from the Florida Division of Emergency Management, which described its four core functions—preparedness, response, recovery, and mitigation—and highlighted its 24/7 State Watch Office, regional training efforts, and disaster assistance work. Deputy Executive Director Keith Pruitt detailed the state’s 2024 storm response, including Hurricanes Debby, Helene, and Milton, citing large-scale mission support, flood-control deployments, meal and water distribution, power restoration, debris removal, and billions in disaster funding and mitigation dollars. He also discussed debris management challenges and recommended that local governments update and exercise debris plans and maintain contingency contracts.

Transcript Highlights:

• And that's a first for California SBDCs to actually support legislation.
• In Fresno County and neighboring areas, SBDC advisors ...ripple throughout our communities.
• Without continued investment at SBDCs and other technical service providers, we can expand access to
• Thank you, and I appreciate very much both of the Assembly Members' attention to the SBDC.
• So there are five SBDC regions in the state.

Summary: The joint informational hearing at Fresno State focused on cost pressures in California’s food system and how those pressures affect households, farmers, and small businesses. Opening remarks emphasized Fresno State’s role in the Central Valley economy and the region’s importance to the state and nation’s food supply. Members said the hearing was part of a broader “pocketbook tour” to gather local input on affordability, food costs, labor, water, regulation, and market conditions, and they noted the added strain from the federal shutdown’s impact on CalFresh benefits and food insecurity. The first panel featured an agricultural economist, a PPIC researcher, and a Small Business Development Center leader. The economist described agriculture’s outsized role in the Central Valley’s GDP, employment, exports, and food manufacturing, while identifying water scarcity, SGMA-related land fallowing, labor shortages and rising labor costs, market uncertainty, invasive pests, and rising production costs as major barriers. The PPIC witness said food prices remain much higher than before the pandemic, household budgets are under pressure, and California’s nutrition safety net—especially CalFresh, WIC, and school meals—reduces poverty significantly, though federal changes and the shutdown could weaken that support. The SBDC representative highlighted technical assistance, capital access, and training for farm-adjacent businesses, but warned that reduced funding and ownership-transition challenges are making it harder for small businesses and farms to adapt. The second panel brought testimony from a small produce grower, a food entrepreneur, and the Fresno County Farm Bureau CEO. The grower said input costs such as fertilizer, fuel, irrigation supplies, land leases, labor, and compliance have risen sharply while wholesale prices have not, leaving small farmers with thin or negative margins and delayed disaster assistance. The food entrepreneur described scaling barriers for small food processors, including the lack of local small-batch processing facilities, higher distribution costs, and the need for better education on labeling and regulatory compliance. The Farm Bureau leader argued that farmers are price takers, not price setters, and said consumer food prices are driven largely by transportation, processing, packaging, and retail costs rather than farm-gate prices; he also stressed the importance of exports, water infrastructure, land preservation, ag burn rules, and continued investment in technology and labor solutions. Members asked about ways to help small farmers, land access, farm-to-school participation, ag burn restrictions, and water reliability. Witnesses suggested grants or programs to help small farmers buy land, more local processing capacity, continued investment in water conveyance and recharge, and stronger support for technical assistance and innovation. No formal votes were taken; the hearing concluded with members thanking the panelists and inviting continued input as they prepare future legislation.

Transcript Highlights:

• SBDC. And so with that, we will start with introductions.
• Susie Pryor from SBDC. Thank you, Chair Colosa.
• But we have SBDC offices all over the state, and we work daily with small businesses.
• Pryor, and thank you for your incredible work on the SBDC.
• Pryor, and thank you for your incredible work on the SBDC.

Summary: The Assembly Select Committee on Asia, California, Trade and Investment held its first informational hearing to examine California’s economic ties with Asia, the effects of federal tariffs, and ways the state can strengthen trade, investment, tourism, and subnational diplomacy. Chair Jessica Caloza opened by emphasizing California’s role as the world’s fourth-largest economy and a major exporter to Asia, and several members and guests highlighted the importance of AAPI communities, sister-city relationships, and coordinated state outreach. Lieutenant Governor Eleni Kounalakis described California’s trade missions, APEC hosting, and ongoing climate and trade partnerships, while Japan’s deputy consul general underscored Japan’s role as a major investor and trading partner and encouraged continued engagement. The first panel, featuring leaders from the Los Angeles County Economic Development Corporation/World Trade Center Los Angeles, the San Francisco Chamber of Commerce, and Visit California, focused on trade, tourism, and investment trends. Witnesses said tariffs and federal uncertainty are disrupting logistics, manufacturing, business travel, higher education, and tourism, with particular concern about port activity, international student declines, and reduced visitation from Asia. They urged California to remain “open for business,” invest in promotion and infrastructure, and use trade missions, MOUs, and sister-city ties to maintain relationships and attract investment. The second panel, with economist Kyle Handley and trade expert Glenn Fukushima, focused on the mechanics and consequences of tariffs. Both said tariffs function as taxes on importers and consumers, raise costs for businesses, and create uncertainty that delays investment, hiring, and supply-chain decisions. They warned that California is especially exposed because of its ports, cross-border trade, and reliance on global supply chains, and said new federal vessel fees and shifting trade routes could divert commerce away from California. They argued that the long-term damage includes lost growth and reduced U.S. credibility, and recommended that California “tariff-proof” its economy through faster ports, better infrastructure, export assistance, and reduced permitting barriers. In the final panel, representatives from the San Diego Regional Chamber of Commerce, Asian Business Association California, and the Small Business Development Center emphasized future opportunities and the needs of small businesses. They said California should deepen ties with Asia through conventions, tourism, and sector-specific partnerships in life sciences, clean tech, semiconductors, hospitality, and small business trade. The witnesses stressed that small and minority-owned businesses need more access to trade missions, capital, technical assistance, and state support, and that California’s economic strength depends on coordinated efforts across regions and industries.

Transcript Highlights:

• “The SBDCs have a $26 million ask to expand funding under CalOSBA under SIP and TAP.
• Hi, Christina Rico again with the SBDCs in support of CalExport.
• The SBDCs have been critical partners to growing California's innovative and technology companies.
• The SBDCs have been critical partners to growing California's innovative and technology companies.
• In the past three years, SBDCs provided 45,000 hours of consulting for innovative companies, helping

Summary: The hearing focused on the Governor’s Office of Business and Economic Development (Go-Biz) and several related budget proposals. Director D.D. Myers described the California Jobs First economic blueprint, regional planning efforts across 13 regions, and the state’s strategy to target sectors such as ag tech, space, life sciences, semiconductors, and emerging technologies. She also discussed the California brand campaign, export promotion, film tax credits, and the California Civic Media Fund, emphasizing job creation, regional equity, and business attraction/retention. Members raised questions about support for journalism, arts and creative industries, AI’s impact on jobs, foreign direct investment, manufacturing, tariffs, and how the Jobs First framework is being implemented across regions. Go-Biz then presented trailer bill language to extend the encumbrance deadline for remaining Jobs First administrative funds and to codify the Office of Regional Economic Development Initiatives. The department said $95 million of the $100 million Jobs First appropriation had already been deployed to grants for counties and tribes, and members asked for more information on regional outcomes, including Orange County and the North State. Public comment supported Jobs First and the Small Business Development Centers’ role in helping businesses access capital and create jobs. The committee also heard a request for ongoing CalExport funding to replace uncertain federal STEP support; the LAO noted the Legislature may want to weigh whether to backfill federal reductions, while Go-Biz argued the state program is needed because federal support appears unlikely to continue and demand exceeds available funding. The committee next heard the film and television tax credit staffing request. Go-Biz asked for funding for three permanent positions to manage the expanded program, and the LAO recommended approval given the increased workload. The Film Commission reported a sharp rise in applications after AB 1138 and the program expansion, with productions taking place both inside and outside the Los Angeles 30-mile zone and activity spread across the state. Finally, Go-Biz presented a request for one permanent position and one graduate student assistant to support innovation and emerging technologies, including quantum and fusion. Members asked about the use of the state’s quantum funding, and staff explained it would support microgrants, state capacity-building, and workforce education. No formal votes were taken in the portions provided, and the chair indicated some items would be moved and heard later in the agenda.

Transcript Highlights:

• We're gonna go to our third panelist, David Fitzgerald, from our good friends at SBDC.
• So the next slide talks about really who the five SBDC networks are.
• That's actually non-competitive and is distributed also to the SBDCs based upon population.
• And that's beyond just what the SBDCs are.
• And the SBDCs receive approximately 50% of that particular funding.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• Susie Pryor, Regional Director, Central California, Small Business Development Center (SBDC).
• SBDC. And so, with that, we will start with introductions.
• Susie Pryor from SBDC. Thank you, Chair Colosa.
• But we have SBDC offices all over the state, and we work daily with small businesses.
• Pryor, and thank you for your incredible work on the SBDC.

Summary: The Assembly Select Committee on Asia, California, Trade and Investment held its first informational hearing to examine California’s trade, tourism, and investment ties with Asia and the effects of federal tariffs. Chair Jessica Caloza opened by emphasizing California’s role as the world’s fourth-largest economy and a major exporter to Asia, and several members and guests highlighted the importance of subnational diplomacy, sister-city relationships, and coordinated trade missions. Lieutenant Governor Eleni Kounalakis described California’s long-standing engagement with Asian partners, citing trade missions, the 2023 APEC summit in California, and the state’s large Asian American and Pacific Islander population as reasons to deepen these relationships. The first panel focused on trade, tourism, and foreign investment. Leaders from the Los Angeles County Economic Development Corporation, the San Francisco Chamber of Commerce, and Visit California said California’s economy depends heavily on Asia-linked trade, tourism, and direct investment. They warned that federal tariffs and related policy uncertainty are disrupting ports, logistics, manufacturing, education, and travel, with impacts on longshore work, shipping volumes, international students, and visitor spending. Visit California reported a decline in 2025 visitation, especially from Asia and Canada, and urged stronger promotion, partnerships, and state-level support to maintain California’s global brand. The second panel examined tariff impacts in more detail. Glenn Fukushima and Dr. Kyle Handley said tariffs function as taxes on imports, raising costs for businesses and consumers and discouraging investment when policy changes are frequent and unpredictable. They argued California is especially exposed because of its ports, supply chains, and cross-border trade with Asia and Mexico, and warned that new vessel fees and rerouted freight could further harm California shippers. Both said tariffs are unlikely to achieve clear strategic goals quickly and may damage U.S. credibility and long-term trade relationships, while recommending that California focus on making itself more competitive through infrastructure, permitting reform, export assistance, and other measures within state control. The final panel turned to future opportunities and the role of small businesses. Speakers from the San Diego Regional Chamber of Commerce, the Asian Business Association California, and the Small Business Development Center network stressed that small and minority-owned firms often feel trade disruptions first and need more access to trade missions, capital, technical assistance, and large events that generate business spillover. They said California should continue investing in ports, business support systems, and international partnerships so that trade and tourism gains reach businesses across the state.

Transcript Highlights:

• And it is reserved exclusively for the five regional SBDC networks.
• My journey with the SBDC started as a small business owner.
• Over the past three years, the California SBDCs have helped...
• We have as well with SBDCs.
• And in those moments, SBDCs have supported more than 23,000 businesses.

Transcript Highlights:

• It's for these reasons that the California SBDC is a proud sponsor of AB 265, because this bill isn't
• And that's where the Kansas SBDC stepped in. We didn't wait for someone else to figure it out.
• As the associate state director of the Kansas SBDC at that time, I sat with business owners who'd lost
• They had given up, but with the help of the SBDC and emergency state support, they rebuilt.
• Oscar Garcia, Director of NorCal SBDC.

Summary: The Assembly Economic Development, Growth, and Household Impact Committee met in person and established quorum after beginning briefly as a subcommittee. The committee adopted its rules and then heard several bills focused on economic recovery, housing, technology, retail theft, and utility infrastructure. AB 265 (Caloza) would create a $100 million state-funded small business and nonprofit recovery program for organizations affected by declared emergencies; it drew broad support from small business, nonprofit, chamber, city, and community groups, with no opposition voiced. AB 797 (Harabedian) proposed a zero-cost state financing structure using CRA-backed securities to help community nonprofits buy wildfire-damaged properties at fair market value and prevent predatory investor purchases; it was presented as a community stabilization tool and received support from the California Community Foundation, with no opposition. AB 940 (Wicks/Ellis) would establish quantum innovation zones to strengthen California’s quantum computing economy, and AB 949 (Shiavo) would create a retail theft grant program for small businesses to fund security improvements and theft prevention measures; both bills were supported by business and university witnesses, though one member said they would not vote for AB 949 due to concerns about broader crime policy. AB 1347 (Carrillo) proposed a pilot program to speed utility interconnections in priority growth regions, including allowing developers to trade expedited connections for upfront infrastructure cost recovery and use microgrids in some cases; it had no opposition in the hearing. Committee members generally expressed support for the bills, especially those aimed at disaster recovery and small business resilience. Questions on AB 940 focused on where quantum innovation zones might be located and how local governments and universities would coordinate; the author and witnesses said the zones should be open statewide and could build on existing research centers such as Berkeley, Stanford, Caltech, UCSB, UCLA, and UCSC. On AB 797, members discussed the need to protect homeowners from below-market offers after wildfires. On AB 949, the author emphasized that modest grants could help small businesses make security upgrades and prevent repeated theft losses. The committee voted to send AB 265, AB 797, AB 940, AB 949, and AB 1347 forward, generally on party-line or near-unanimous votes, with the bills reported out of committee and placed on call as needed. The consent calendar, including AB 254, AB 415, AB 655, AB 1232, AB 1254, AB 1477, and HR 27, was also approved. The hearing adjourned at 10:33 a.m.