Reyes’ Bill to Foster Small Business Growth across California Advances
(SACRAMENTO) — Senator Eloise Gómez Reyes (D-Colton) today announced that her bill to foster small business growth in California passed out of the Senate Committee on Local Government with unanimous, bipartisan support late last month. Senate Bill (SB) 781 would provide a framework for local governments to increase small business access to local government contracts and resources for strategic growth initiatives. The bill will next be heard by the Senate Appropriations Committee.
“The Inland Empire is ripe with talent and opportunity, but the economic environment makes it difficult for small businesses to survive,” said Senator Eloise Gomez-Reyes (D-Colton). “At the same time, our region remains in desperate need for diverse and sustainable growth and investment. SB 781 provides community-driven strategies and support to cut red tape and foster an environment that allows small businesses to breathe and thrive.”
Over half of California’s private sector workforce is powered by more than 4 million businesses with fewer than 500 employees. These small businesses bridge gaps in supply chains, bring innovative products and ideas into the marketplace, and help American products enter global markets.
While small businesses serve as an essential foundation of the California economy, many have struggled to rebound from the COVID-19 pandemic. This is especially true in the Inland Empire region, where more than 50 percent of small businesses report declining revenues and limited access to capital, according to the 2023 report by the University of California, Riverside Center for Social Innovation. Additionally, Riverside and San Bernardino counties consistently lag behind the state average in small business loan approvals and startup growth, highlighting the tougher climate for small/micro enterprises.
Uncertainty for small businesses is further exacerbated by Executive Orders issued by the federal administration targeting those who work with Minority Business Development Centers. This uncertainty is inadvertently accelerated by a California state law requiring Small Businesses Technical Assistance Program grant applicants to acquire matching federal dollars.
SB 781 proposes a comprehensive framework for local governments that seek to adopt Small Business Utilization Plans. Among other elements, the Plans would include a 25 percent minimum goal for small business procurement participation. Plans would provide local procurement incentives, preferences, and flexibility in solicitation requirements, as well as training to support successful implementation by local government staff. These provisions would provide a lifeline to neighborhood contractors, childcare providers, local print shops, and family-run maintenance and landscaping businesses, among many others.
To help local governments succeed, the bill also authorizes the California Office of the Small Business Advocate to provide mentorship and guidance on strategic growth initiatives. Such a partnership between state and local entities would foster growth among sectors employing the fewest number of employees with acute contributions to local economies, particularly for those in traditionally underserved communities. These might include budding tech entrepreneurs, family-owned restaurants and catering businesses, home health care and elder care services, and those in digital first retail or service spaces.
SB 781 also clarifies that the state will be able to continue to fund small business programs regardless of federal matching requirements, which will make it easier for those supporting Diversity, Equity, and Inclusion initiatives to withstand shifting federal priorities.
SB 781 is sponsored by California Chambers of Commerce representing minority-owned businesses across the state.
“SB 781 will establish local Small Business Utilization Programs to support small businesses, expand their operations, create jobs, and strengthen local economies.” Julian Canete, President and CEO, California Hispanic Chambers of Commerce.
“Establishing local Small Business Utilization Programs through SB 781 provides essential support for small businesses to grow and thrive, fostering economic and workforce development where it matters most—at the local level.” Pat Fong-Kushida, President and CEO, California Asian Pacific Chamber of Commerce.
“Through targeted Small Business Utilization Programs, SB 781 will empower local enterprises to expand their reach, create jobs, and contribute to the local economies.” Ahmad Holmes, President and CEO, California African American Chamber of Commerce.
SB 781 passed the Senate Committee on Local Government with unanimous, bipartisan support on April 30. It is currently on the Senate Appropriations Committee suspense file, which will be voted on by May 23.
###
Senator Eloise Gómez Reyes represents Senate District 29, Colton, Fontana, Highland, Loma Linda, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland, Grand Terrace, Loma Linda, and the unincorporated communities of Bloomington and Muscoy.