CHAPTER 7.3. California Regional Initiative for Social Enterprises Program [11788. - 11788.4.]

Cal. Government Code - GOV 7.3.

in effect

Cal. Government Code - GOV § 11788. Section 11788.

For purposes of this chapter, all of the following terms shall have the following meanings: (a) “Employment social enterprise” has the same meaning as in Section 14005 of the Unemployment Insurance Code. (b) “Program” means the California Regional Initiative for Social Enterprise Program created pursuant to, and administered in accordance with, this chapter. (c) “CalOSBA” or “office” means the California Office of Small Business Advocate within the Governor’s Office of Business and Economic Development. (d) “Director” means the Director of the California Office of the Small Business Advocate. (e) “Fiscal agent” means an organization with a mission that includes grantmaking to support economic empowerment of employment social enterprises and that is capable of online and mobile application development, customer support, document validation, impact analysis, grant agreements, and awards disbursement, as well as marketing, engagement, and strategic partnerships with a network of employment social enterprises for implementation.

Cal. Government Code - GOV § 11788.1 Section 11788.1

(a) (1) Upon appropriation by the Legislature, CalOSBA shall establish the California Regional Initiative for Social Enterprises Program pursuant to this chapter. (2) In order to accelerate economic mobility and inclusion for individuals that experience employment barriers, the purpose of the program shall be to provide financial assistance and technical assistance to employment social enterprises. (b) (1) The office shall administer the program to support employment social enterprises in the state through grants disbursed by one or more fiscal agents. (2) The office shall designate at least one fiscal agent to administer the program in accordance with Sections 11788.2 and 11788.3. (3) In implementing the program, the office or fiscal agents shall consult with local, regional, federal, and other state public and private entities that share a similar mission to support the needs of employment social enterprises in the state.

Cal. Government Code - GOV § 11788.1.5. Section 11788.1.5.

(a) (1) A fiscal agent shall award one-time grants to employment social enterprises through a competitive grant process developed by the office or the fiscal agents. (2) Grants awarded pursuant to this subdivision shall be of sufficient size and scope to enable the employment social enterprise to build their capacity to generate revenue and provide jobs, training, and support to employees, develop data and learning systems, or replicate or expand within their community or to other California communities. However, each grant shall not exceed five hundred thousand dollars ($500,000). (3) Employment social enterprises that satisfy the following shall be given preference in the competitive grant process: (A) Are located in regions of the state with characteristics like those of the Inland Empire and the Central Valley. (B) Are led by people with lived experience, including, but not limited to, having been incarcerated, homeless, or engaged in substance misuse. (b) (1) Each grant shall be accompanied by technical assistance provided by a fiscal agent. The value of technical assistance provided to each grantee shall be up to 30 percent of the grant amount awarded to the grantee. The technical assistance provided shall be in addition to the grant amount awarded in subdivision (a). (2) Technical assistance shall be provided for the duration of the grant period for purposes of growing employment social enterprises and underserved small business groups that are facing capital and opportunity gaps. The technical assistance offered by a fiscal agent to an employment social enterprise shall consist of evaluating the readiness of an employment social enterprise for sustainable growth across five areas: business model, program model, fundraising, operations, and human capital. (c) The fiscal agent is authorized to use only up to 10 percent of moneys received under this chapter for costs incurred for program administration.

Cal. Government Code - GOV § 11788.2. Section 11788.2.

A fiscal agent shall be eligible to be designated by the office if the office determines that the fiscal agent meets all of the following criteria: (a) The fiscal agent is able to connect state and local agencies, including, but not limited to, agencies in the workforce, social and health services, homelessness, and justice systems to better serve high-barrier populations and ensure greater system collaboration. (b) The fiscal agent provides information describing the transparent, competitive process by which it will select employment social enterprises to receive the one-time grants. The process shall require employment social enterprises to have a demonstrated track record of achieving specific outcomes related to economic inclusion, stability, and mobility that meets the following criteria: (1) A clear and strong business model that demonstrates revenue growth and potential for further growth and scale. (2) A comprehensive and data-driven program model that supports a quality employment social enterprise job that prioritizes long-term outcomes for its employees and demonstrates strong results. (3) Strong leadership that presents a vision for the employment social enterprise that encompasses realistic growth, expansion, and deepening impact and demonstrates commitment to racial equality in the employment social enterprise. (4) It is in a stable financial position, and possesses the capacity to work with a small business technical assistance center and to implement recommendations that are offered by a small business technical assistance center.

Cal. Government Code - GOV § 11788.3. Section 11788.3.

The office shall evaluate eligible fiscal agents, as described in Section 11788.2, based upon the following factors: (a) The proposed use of the requested funding, including the specificity, measurability, and ability of the fiscal agent to document and achieve the goals and objectives identified in its application. (b) The proposed management strategy of the fiscal agent to achieve the goals and objectives identified in its application. (c) The fiscal agent’s ability to complement and leverage the work of other local, state, federal, and nonprofit or private business technical assistance resource providers. (d) The fiscal agent’s historical performance with private funding sources and the strength of its fiscal controls.

Cal. Government Code - GOV § 11788.4. Section 11788.4.

(a) Upon approval of a grant award pursuant to this article, the office shall issue a notice to the fiscal agent that includes all of the following: (1) The amount of the award. (2) A requirement that the fiscal agent periodically provide a performance report that includes all of the following information: (A) The number of employment social enterprises consulted and trained. (B) The amount of funds awarded to employment social enterprises. (C) The size of employment social enterprises assisted based upon the number of employees at the time that those businesses were assisted, as reported by those assisted businesses, categorized based upon the size of the assisted business, as determined by the office. (D) The city and county in which any assisted employment social enterprises are located. (E) A narrative description of the system collaboration with state and local government agencies that the small business technical assistance center has developed to better serve people breaking through barriers to employment. (F) Industry sectors of the employment social enterprises assisted, as reported by those businesses. (G) A narrative description of how the funds awarded were used to expand services to employment social enterprises and to help employment social enterprises to expand, facilitate investment, and create jobs in California, including in rural communities, low-income communities, and disaster-impacted areas included in a state or federal emergency declaration or proclamation. (H) The demographics of employment social enterprise leaders supported, including their race. (I) The number of jobs created. (J) The number of individuals employed and the demographics of social enterprise employees, including race and gender. (3) A requirement that the fiscal agents periodically provide a financial report that includes all of the following information: (A) The name of any business consultant employed. (B) The hourly rates of any business consultant employed. (C) The cost of employment social enterprise training. (D) The cost of administration and marketing. (E) The duration of the assistance provided by the fiscal agents. (F) The start date of the assistance provided by the fiscal agents. (b) Each fiscal agent shall accept the performance and financial reporting requirements in this section as a condition of being designated as a fiscal agent. (c) No more than 60 days following the completion of an agreement term pursuant to this chapter, a fiscal agent shall provide a final written performance and financial report to the office consistent with the requirements of this section.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026