Assembly hearing highlights SBDC’s statewide role and urges stable state investment

At an informational hearing of the California State Assembly committee, SBDC leaders and small business owners described how the California Small Business Development Center (SBDC) network provides advising, capital access and disaster recovery services across the state and asked lawmakers to back stable state funding.

Kristen Johnson, regional director of the Northern California SBDC, told the committee the network includes more than 70 physical locations, 800 advisors and 48 local hosts at colleges and universities. “With more than 70 physical locations and many services delivered online, California SBDC has more than 800 advisors that help California businesses grow,” Johnson said. She summarized recent performance metrics: in the past three years, SBDC clients started about 10,000 new businesses, the network supported roughly 415,000 jobs and helped secure about $4.2 billion in capital access, which Johnson said increased the state tax base by about $4.3 billion.

Johnson and other panelists described the program’s leverage of state investment. Johnson said a 2025 capital infusion (SIP) and the state’s capital infusion program help SBDC secure federal funds; in materials she cited that, for every $1 of state investment, SBDC helped mobilize roughly $217 in growth capital to businesses. Chair Solace noted that AB 685, a small business resiliency and innovation bill, passed the Assembly the previous day and will create a small business facility fund that the speakers said would help meet disaster recovery and resiliency needs.

Pat Nye, regional director for Los Angeles SBDC, described SBDC’s disaster response role: the network helps businesses navigate FEMA and Cal OES processes, insurance claims and grant applications, and acts as a conduit between small businesses and state agencies. “We are on the ground...and once the scene is secure, we act almost as second responders,” Nye said, describing how SBDC provided tens of thousands of hours of direct advising during recent disasters and the COVID pandemic. Small business witnesses told personal stories of recovery: Joey Galloway said SBDC and philanthropic partners helped rebuild storefronts after the Eaton Fire in Altadena and reopen tenants within months.

Lawmakers repeatedly pressed panelists on funding and program reach. Multiple presenters urged that state funding levels be aligned with the network’s scale and rising demand, especially for services that are time‑sensitive after disasters. The hearing closed with members urging continued legislative support so SBDC can maintain regional reach and rapid, district‑level implementation. The committee adjourned with a pledge to consider funding proposals and follow‑up briefings.