Assembly BillChaptered/SignedGovernment
AB 685: Small Business Development Technical Assistance.
What AB 685 does, verified October 2, 2026
The bill aims to provide assistance to small businesses in California by establishing a new fund to support their resilience and innovation. The fund will be allocated $26 million from the general fund and administered by the Office of Small Business Advocate (OSBA). The funds will be used to support the Capital Infusion Program (CIP) and the California Small Business Technical Assistance Program (SB-TAP), as well as OSBA's administrative costs. The program is intended to help small businesses survive in the marketplace and will be reported on annually to the legislature. The bill takes effect immediately as an urgency statute.
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Last action: Chaptered by Secretary of State - Chapter 824, Statutes of 2026. (2026-09-30)Alert me
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| Sep. 30, 2026 | Chaptered by Secretary of State - Chapter 824, Statutes of 2026. |
| Sep. 30, 2026 | Approved by the Governor. |
| Sep. 04, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 27, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6683.). |
| Aug. 27, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 30, 2026 · 3,162 words
Assembly Bill No. 685
CHAPTER 824
An act to amend Sections 12100.61 and 12100.63 of the Government Code, relating to economic recovery.
[ Approved by Governor September 30, 2026. Filed with Secretary of State September 30, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 685, Solache. Small Business 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 multiple small business technical assistance centers to apply as a network with a single fiscal agent if 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.
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).
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 operating as a network or as an individual center.
(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 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 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. Multiple small business assistance centers may apply as a network with a single fiscal agent if the active contracts are 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) The applicant provided a plan of action and demonstrates the capacity to effectively operate a small business technical assistance center solely with nonstate funding, including the local cash match, and to comply with all applicable reporting requirements.
(3) The requested funding amount does not exceed the total award specified 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.
(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 entities that provide services to defined membership groups.
(15) Standardized performance metrics, reporting requirements, and outcome measurement requirements applicable to all grant recipients participating in the program.
(h) (1) The office shall evaluate applications received based on the following factors:
(A) The proposed use of the requested funding, including the specificity, measurability, and ability of the applicant to document and achieve the goals and objectives identified in its application.
(B) The proposed management strategy of the applicant to achieve its goals and objectives identified in its application.
(C) The applicant’s ability to complement and leverage the work of other local, state, federal, nonprofit, or private business technical assistance resource providers.
(D) The applicant’s historical performance with funding partner contracts or private funding sources and the strength of its fiscal controls.
(2) The office shall prioritize funding for applications that best meet the factors listed in paragraph (1) and give preference to applications that propose new or enhanced services to underserved business groups, including women, minority, and veteran-owned businesses, and businesses in low-wealth, rural, and disaster-impacted communities included in a state or federal emergency declaration or proclamation.
(3) The office shall establish standardized performance metrics, reporting requirements, and outcome measures applicable to all grant recipients participating in the program. These standards shall ensure consistency, transparency, and meaningful oversight of state funds and shall allow the office and the Legislature to evaluate program effectiveness and measure the impact of state investments in small businesses.
(4) The office’s obligation to track and report outcome measures for a grant recipient under this section shall extend for the grant performance period. Nothing in this subdivision shall be construed to limit the office’s authority to collect financial or compliance data from a grant recipient beyond this period as necessary to ensure proper use of state funds.
(5) Performance metrics and outcome measures may include, but need not be limited to, the following:
(A) The number and characteristics of small businesses served.
(B) The number of consulting hours, training opportunities, and technical assistance services provided.
(C) Geographic distribution of services, including services provided in rural, low-income, and underserved communities.
(D) Services provided to underserved business groups, including women-owned, minority-owned, veteran-owned, and disaster-impacted businesses.
(E) Business outcomes associated with technical assistance provided, including improved access to capital, business formation, business retention, job creation or retention, increased revenue, and other measurable indicators established by the office.
(6) All grant recipients, regardless of organizational structure, service delivery model, or organizational affiliation, shall comply with the same reporting requirements and performance standards established pursuant to this subdivision.
(i) (1) State funds provided pursuant to the program shall be used to expand consulting and training services through existing and new centers, including satellite offices. State funds provided pursuant to the program shall not supplant nonstate local cash match dollars included in a federal small business technical assistance center’s plan described in subparagraph (A) of paragraph (2) of subdivision (f) or in any nonfederal small business technical assistance center’s plan.
(2) A grant recipient shall ensure that technical assistance services funded pursuant to this program are available to all eligible small businesses seeking assistance and shall not restrict access based on membership, affiliation, dues payment, or participation in an organization operated by the grant recipient.
(3) A chamber of commerce, membership-based organization, or other entity receiving funds pursuant to this section shall establish procedures to ensure that publicly funded technical assistance services are available to eligible small businesses within the geographic or service area served by the grant recipient, regardless of membership status.
(j) Subject to appropriation of necessary funds by the Legislature, a supplemental grant program designated as the California Dream Fund Program shall be established by the office to provide microgrants as described in this subdivision. The microgrants shall be disbursed through California Small Business Technical Assistance Program grantees. California Small Business Technical Assistance Program applicants, as prescribed by the office, may also request state funds designated as the California Dream Fund Program moneys to provide microgrants up to ten thousand dollars ($10,000) to seed entrepreneurship and small business creation in underserved small business groups that are facing capital and opportunity gaps. These microgrants shall be made available to startup clients participating in intensive startup training and consulting with the center networks.
(k) For purposes of implementing the California Dream Fund Program, a person or entity shall not seek information that is unnecessary to determine eligibility, including whether the individual is undocumented. Information that may be collected from individuals participating in the California Dream Fund Program shall not constitute a record subject to disclosure under Division 10 (commencing with Section 7920.000) of Title 1.
(l) (1) If an applicant’s federal contract was canceled, frozen, or rescinded in the 2024–25 fiscal year, then for grants made in fiscal years 2025–26 to 2027–28, inclusive, the requirements in subdivision (f) are modified, as follows:
(A) The applicant may use its 2023–24 federal fiscal year contract to meet the requirement described in paragraph (1) of subdivision (f) to have an active contract with a federal funding partner to administer a program in this state.
(B) The requirement described in paragraph (2) of subdivision (f) shall be waived if the applicant meets all of the following criteria:
(i) The applicant received an award pursuant to this chapter as a federal small business technical assistance center during the 2022–23, 2023–24, and 2024–25 funding rounds.
(ii) The office determines that the applicant successfully implemented their awarded contracts in 2023 and 2024.
(C) An applicant may use the total contract award amount in its 2023–24 federal fiscal year contract to meet the requirement described in paragraph (3) of subdivision (f) that the requested funding amount made in a grant pursuant to this chapter not exceed the total federal award specified in the contract with the federal funding partner contract.
(2) This subdivision shall not apply if the office determines that the contract was canceled, frozen, or rescinded based upon a finding and declaration of noncompliance.
(3) State funding adjustments authorized pursuant to this subdivision shall be temporary and limited.
(4) State funding provided pursuant to this subdivision may also be used for outreach efforts to ensure that small businesses, including those in underserved and rural communities, are aware of, and can access, technical assistance services.
(5) The office shall review and confirm that the applicant continues to meet state performance standards and provides high-quality, equitable technical assistance services. The office shall monitor grant recipients within the grant performance period to ensure compliance with program requirements, including equitable access standards, reporting obligations, and performance measures established pursuant to this section. The office shall maintain records sufficient to evaluate program effectiveness and assess whether state investments are producing measurable outcomes for small businesses throughout California. The office shall report its findings and actions and aggregate program outcomes to the Legislature. A report to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
(6) This subdivision shall remain operative until June 30, 2029.
SEC. 3.
The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.Text of AB 685 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions