SBDC described as 'second responder' for disasters; lawmakers and panelists flag gaps for immigrant‑owned businesses

A California Assembly informational hearing featured detailed testimony on SBDC’s disaster‑response role and limits of federal disaster programs for immigrant‑owned businesses.

Pat Nye, regional director for Los Angeles SBDC, told the committee that SBDC often functions as a ‘second responder’ after public safety officials secure a scene: SBDC staff help businesses file insurance claims, apply for grant funding, restructure debt and find temporary locations. “We are on the ground...and once the scene is secure, we act almost as second responders,” Nye said, describing substantial advising hours during recent California disasters and the COVID pandemic.

Multiple Assembly members asked whether immigrant‑owned businesses have reduced contact with SBDC because of immigration enforcement concerns. Panelists said SBDC services are confidential and that SBDC does not provide client data to funders or enforcement agencies. Still, panelists and members noted a recurring problem: many immigrant entrepreneurs are ineligible for FEMA or other federal disaster programs. Assembly member questions and panel responses made clear that California lacks a permanent, statewide safety‑net program for businesses that do not qualify for federal dollars; instead, state and philanthropic responses have to be assembled case‑by‑case. Speaker 12 referenced earlier efforts to create a disaster funding mechanism (AB 265) that did not become permanent but showed a path lawmakers have previously considered.

Small business testimony underscored the urgency: Joey Galloway said SBDC and partners provided grants and advising after the Eaton Fire that enabled six businesses to reopen within 10 months. Lawmakers pressed for options to create flexible state funding so recovery is not dependent on federal eligibility or ad‑hoc local appropriations. The hearing produced no immediate policy decision; members asked staff to return with options for a more predictable and equitable disaster support mechanism.