Bo Tefu | California Black Media
17 Small Businesses Receive $2 Million in State Funding; Applications Open for More Grants
On March 5, Gov. Gavin Newsom announced more than $2 million in state funding for small businesses developing new technologies, while encouraging entrepreneurs to apply for additional grants through a statewide innovation program.
The funding, awarded through the California Office of the Small Business Advocate (CalOSBA)Innovation Grant Awards, supports startups working in sectors such as health technology, clean energy, artificial intelligence and advanced manufacturing. Officials said the program is designed to help early-stage companies grow and bring new products to market.
Entrepreneurs across California received grants ranging from $25,000 to $100,000 to help expand operations, develop technologies and move innovations closer to commercialization. Newsom’s office said the investments aim to strengthen local economies and maintain California’s reputation as a global hub for innovation.
“California continues to be a global leader in innovation and entrepreneurship,” said Newsom. “Today’s investments reflect the state’s commitment to help all, boosting local economies through new small businesses in our communities across the state.”
More than 70% of the companies receiving grants are pre-revenue startups, meaning they are still developing products before entering the marketplace. Several awardees have already secured patents or filed patent applications, highlighting the program’s focus on emerging technologies and research-driven innovation.
“Everyone knows that California is ground zero for innovative entrepreneurship,” said Elmy Bermejo, director of CalOSBA. “But our office is working to diversify the state’s innovation economy by recognizing early-stage businesses and founders from all backgrounds struggling to break through barriers to capital.”
The grants are part of the state’s Accelerate California initiative, which connects startups with mentorship, technical assistance and access to funding through regional innovation hubs.
Since 2023, the program has supported more than 29,000 startups and small businesses and helped create more than 3,200 jobs statewide, according to state officials.
Applications for future grants remain open to California entrepreneurs developing new technologies, products or services. Officials said interested business owners can connect with one of the program’s regional hubs to access mentorship, technical support and potential funding opportunities.
