Issue Brief: Assessing the California Rebuilding Fund
Full Report
Executive Summary
Press Release
The California Rebuilding Fund is a Crucial Resource for Small Businesses, Yet Challenges Hinder its Progress, Little Hoover Commission Finds
The California Rebuilding Fund has issued almost 1,200 loans in 39 California counties to help small businesses recover and grow from the COVID-19 pandemic, yet implementation challenges remain for this innovative program, the Little Hoover Commission explains in its new Issue Brief.
In the Brief, its resource for state policymakers that outlines current research without making policy recommendations, the Commission assesses the progress of the California Rebuilding Fund, a public-private partnership that provides loans to small businesses in underserved communities.
The Brief also presents findings from the Commission’s public hearing on the Fund held in March 2022, a follow-up to recommendations made by the Commission in its December 2020 report, First Steps toward Recovery: Saving Small Businesses. In that report, the Commission urged officials to further expand the Rebuilding Fund if initial results from the program were promising.
“Small businesses throughout California were devastated by the pandemic, and the California Rebuilding Fund is a crucial solution to helping these businesses – the cornerstones of our communities – recover and thrive,” said Commission Chair Pedro Nava.
The Commission found that while loans have occurred in 39 of California’s 58 counties, Bay Area counties, and especially San Francisco, have received a disproportionate share of the loans. This reflects, among other causes, specific local actions by San Francisco and Santa Clara County to invest in the Fund.
In the Issue Brief, the Commission also outlines other metrics about the Fund’s accomplishments:
Over 85 percent of loans have gone to businesses with ten or fewer employees.
More than 65 percent of loans have gone to businesses owned by women or people of color.
Nearly half of loans have gone to businesses located in low-to-moderate income communities.
Still, the Rebuilding Fund has faced numerous challenges since its launch in 2020:
California’s promotion of its small business grants programs has largely overshadowed the Rebuilding Fund’s outreach efforts.
Raising capital for the Fund has been slower than expected due to the unique structure of the program as well as hesitancy from state and private lenders to invest.
Leveraging local funding is an important factor in determining how the program’s funds are distributed, yet only San Francisco and Santa Clara counties have partnered with the Rebuilding Fund to better support businesses in their communities.
“We hope this Issue Brief serves as a valuable resource to state leaders as they consider establishing long-term structural supports for the underrepresented small businesses throughout California,” said Vice Chair Sean Varner.
Fact Sheet
Study Description
Agenda
Overview
The COVID-19 pandemic had devastating effects on small businesses in California, with minority- and women-owned businesses bearing the brunt of these impacts. In response, the California Rebuilding Fund was launched in Fall 2020 to partner with Community Development Financial Institutions (CDFIs) in providing loans to small businesses as they rebuild and recover from the unprecedented impacts of the pandemic.
This Issue Brief assesses the progress of the Rebuilding Fund and also presents findings from the Commission's public hearing on the Fund held in March 2022, which was a follow-up to recommendations made by the Commission in its December 2020 report, First Steps toward Recovery: Saving Small Businesses. In that report, the Commission urged officials to further expand the Rebuilding Fund if initial results from the program were promising.
Relevant Reports
In the News
- CalMatters, July 21, 2022, "Small business grants overshadow loan program in COVID-19 response."

-
March 242022Implementation Review Hearing on the California Rebuilding Fund and Business Meeting10 a.m.EventAgenda
AGENDA:
Implementation Review Hearing on the California Rebuilding Fund
10:00 a.m.
Thursday, March 24, 2022
Join Online or By Phone Via Zoom
Online: https://bit.ly/3J6b7BT
Toll Free Phone: (888) 788-0099
Webinar ID: 956-7137-8187
Password: 7536221. Scott Wu, Executive Director, California Infrastructure and Economic Development Bank (IBank) (Written Testimony)
2. Beth Bafford, Vice President, Strategy, Calvert Impact Capital (Written Testimony)
3. Hilda Kennedy, Founder and President, AmPac Business Capital (Written Testimony)
4. Public Comment
Business Meeting
Immediately following the hearing1. Public Comment
2. Approval of Minutes from Feb. 24, 2022
3. Commission Elections of Chair and Vice Chair
4. Implementation and Impact Report
5. Project and Meeting Schedule
1. Update on Current Studies
2. Update on Future Meeting Schedule
Public NoticeFOR IMMEDIATE RELEASE
March 14, 2022
For Additional Information Contact:
Ethan Rarick, Executive Director
(916) 445-0926Notice of Hearing and Meeting
On Thursday, March 24, 2022, the Little Hoover Commission will conduct an implementation review hearing beginning at 10:00 a.m. on the California Rebuilding Fund. Immediately following the hearing, the Commission will conduct a business meeting. Both the hearing and meeting will be conducted via Zoom.
Members of the public are encouraged to listen to the events by joining online or by phone. Click the URL to join online: https://bit.ly/3J6b7BT. To join via phone, call toll free from the U.S. by dialing (888) 788-0099. The webinar ID is 956-7137-8187. The password is 753622. We highly recommend members of the public access the events through the Zoom app. Please visit the Zoom website for instructions on how to download the Zoom app onto a computer or smartphone.
During the meeting, members of the public may indicate to staff that they wish to make public comment by using the “raise” hand feature in Zoom or sending an email to LittleHoover@lhc.ca.gov with your question and the phone number from which you have joined the meeting. As is the Commission’s normal procedure during physical meetings, public comments will be limited to three minutes each.
The Commission may act on any item listed on the attached business meeting agenda. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The hearing and meeting may be cancelled without notice.
If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or LittleHoover@lhc.ca.gov by Thursday, March 17, 2022.
Please be aware that there may be delays in responding to emails or other communications to the Commission as our staff is now working remotely due to the coronavirus epidemic. We appreciate your patience.Video

-
March 242022Implementation Review Hearing on the California Rebuilding Fund and Business Meeting10 a.m.EventAgenda
AGENDA:
Implementation Review Hearing on the California Rebuilding Fund
10:00 a.m.
Thursday, March 24, 2022
Join Online or By Phone Via Zoom
Online: https://bit.ly/3J6b7BT
Toll Free Phone: (888) 788-0099
Webinar ID: 956-7137-8187
Password: 7536221. Scott Wu, Executive Director, California Infrastructure and Economic Development Bank (IBank) (Written Testimony)
2. Beth Bafford, Vice President, Strategy, Calvert Impact Capital (Written Testimony)
3. Hilda Kennedy, Founder and President, AmPac Business Capital (Written Testimony)
4. Public Comment
Business Meeting
Immediately following the hearing1. Public Comment
2. Approval of Minutes from Feb. 24, 2022
3. Commission Elections of Chair and Vice Chair
4. Implementation and Impact Report
5. Project and Meeting Schedule
1. Update on Current Studies
2. Update on Future Meeting Schedule
Public NoticeFOR IMMEDIATE RELEASE
March 14, 2022
For Additional Information Contact:
Ethan Rarick, Executive Director
(916) 445-0926Notice of Hearing and Meeting
On Thursday, March 24, 2022, the Little Hoover Commission will conduct an implementation review hearing beginning at 10:00 a.m. on the California Rebuilding Fund. Immediately following the hearing, the Commission will conduct a business meeting. Both the hearing and meeting will be conducted via Zoom.
Members of the public are encouraged to listen to the events by joining online or by phone. Click the URL to join online: https://bit.ly/3J6b7BT. To join via phone, call toll free from the U.S. by dialing (888) 788-0099. The webinar ID is 956-7137-8187. The password is 753622. We highly recommend members of the public access the events through the Zoom app. Please visit the Zoom website for instructions on how to download the Zoom app onto a computer or smartphone.
During the meeting, members of the public may indicate to staff that they wish to make public comment by using the “raise” hand feature in Zoom or sending an email to LittleHoover@lhc.ca.gov with your question and the phone number from which you have joined the meeting. As is the Commission’s normal procedure during physical meetings, public comments will be limited to three minutes each.
The Commission may act on any item listed on the attached business meeting agenda. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The hearing and meeting may be cancelled without notice.
If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or LittleHoover@lhc.ca.gov by Thursday, March 17, 2022.
Please be aware that there may be delays in responding to emails or other communications to the Commission as our staff is now working remotely due to the coronavirus epidemic. We appreciate your patience.Video