Bonta Bill Paves Pathway for Underrepresented Business Owners to Rebuild California
AB 2270 Establishes a Statewide Bonding Assistance Program to help Underrepresented Small Businesses Compete for Public Works Contracts
(Sacramento, CA) – This week, Assemblymember Rob Bonta (D-Oakland) announced that his bill to help small businesses owned by underrepresented community members stay competitive in the rapidly changing economy was approved by the Assembly 78-0.
“Many small businesses are at a severe disadvantage when they try to compete for public works contracts,” Bonta explained. “Small businesses owned by women, minorities and disabled veterans have been traditionally locked out of the market because of lack of access to bonding. AB 2270 fixes the problem by establishing a collateral pool to help businesses qualify for bonding and providing technical assistance to those businesses.”
Bonta explained why timing is critical for the new program. “State contracts with small businesses create more jobs and revenue than with larger businesses. California is launching an unprecedented effort to rebuild its infrastructure over the next five years, resulting in over $50 billion opportunities for public works projects. We need a diverse, qualified pool of small businesses at the table to compete for these contracts, which will lower state costs and give more back to the local economy.”
AB 2270 now moves to the Senate for assignment to policy committees.
Assemblymember Bonta represents the 18th Assembly District, which includes the cities of Oakland, Alameda, and San Leandro. Bonta Chairs the Assembly Public Employees, Retirement, and Social Security Committee and the Select Committee on the Status of Boys and Men of Color in California.