Beyond Newsom’s Rebuilding Fund, additional action is necessary to preserve small businesses
With the launch of the Rebuilding Fund, California has laid a foundation for small business recovery, but much more needs to be done
This article, co-authored with Pedro Nava and Sean Varner, fellow Little Hoover Commissioners, was first published by Cal Matters on December 8.
On Nov. 20, Gov. Gavin Newsom announced the launch of a key program to support small businesses devastated by the COVID-19 pandemic — the California Rebuilding Fund. While we commend this strong start, the state must marshal more resources to address the pandemic’s impact on our small business communities.
The Rebuilding Fund is a partnership between state and local governments and private organizations — some for-profit, some nonprofit — that will provide financial support to small businesses in underserved communities. The governor and Legislature provided a $25 million anchor commitment in this year’s budget, state money that the Rebuilding Fund will combine with private capital to provide low-interest loans to small businesses.
“This public-private partnership,” Newsom explained, “will give underserved communities across California access to capital, making for a more inclusive economy.” On Nov. 30, Newsom further announced an additional…
