Governor Gavin Newsom Signs First-in-the-Nation Protections for Small Businesses and Nonprofits into California Law

FOR IMMEDIATE RELEASE: 30 September 2024

MEDIA CONTACT: Raya Steier, c: 5307232426, e: rsteier@lccrsf.org

***PRESS RELEASE***

SACRAMENTO – California Governor Gavin Newsom has signed the Commercial Tenant Protection Act (Senate Bill 1103), authored by Senator Caroline Menjivar, into state law.

The bill delivers first-in-the-nation commercial protections to safeguard the smallest businesses and nonprofits from displacement. The bill provides commonsense leasing standards that bring clarity and stability to both business owners and landlords alike. It also expands language access for commercial leases, reducing a critical barrier that has historically harmed immigrant entrepreneurs.

“California doesn’t just say small businesses are the backbone of our economy, we enact laws that prove how valuable they are to our state! Senate Bill 1103, just signed by Governor Newsom, is specifically tailored to protect the smallest and most vulnerable small businesses and nonprofits,” said Senator Menjivar (D – San Fernando Valley). “Contracts in five additional languages, extended notices for evictions and rent increases, and more transparency around building costs – these common sense measures in SB 1103 will ensure these businesses can continue to serve their neighborhoods and create more stable tenancies that benefit both landlords and tenants. It is an added protection for entrepreneurs who put their passion, sweat, and tears into bringing their American dream to reality.”

SB 1103 was co-sponsored by a strong coalition of small business advocates and economic justice leaders across California, including Small Business MajorityPublic Counselthe Lawyers’ Committee for Civil Rights of the San Francisco Bay AreaInclusive Action for the CityCAMEO Network, and Bet Tzedek Legal Services.

With this signing, SB 1103 enshrines into California law these key protections for the smallest businesses and nonprofits in the state:

  • Expanding language access by requiring commercial leases be provided to tenants in the languages in which they are negotiated; 
  • Creating transparency and standards with respect to building operating costs;
  • Giving small businesses and small nonprofits more time to prepare for rent increases or termination of their tenancies so they can stay in their neighborhoods.

The six co-sponsor organizations leading this effort reflect on what this victory means for California’s economy and communities:

“Low-income small business owners are often people of color and immigrants who have been historically marginalized and underserved due to systemic discrimination in commercial lending, the racial wealth gap, gentrification, and the legacy of redlining. Many small business owners in California face significant displacement due to a lack of legal protections for commercial tenants, and outdated leases. SB 1103 allows small business owners to stay in their communities, fight displacement, and thrive! We are excited to see the effects of this law in California, this is a win not only for small business owners but for all of us who enjoy supporting our local businesses.” – Nadia Segura, Director of Small Business Development Project, Bet Tzedek

“Small businesses and nonprofits are economic generators and community anchors. Their success is directly linked to the health and vibrancy of our communities. Our work directly providing legal assistance to small businesses and small nonprofits has shown us time and time again how hard it is for them to keep their doors open. We are so pleased the Governor has signed SB 1103 into law, increasing transparency in commercial leasing and giving our community pillars a fighting chance to stay in business.” – Ritu Mahajan Estes, Directing Attorney, Public Counsel

Our communities thrive and our economy grows when small business owners and community-serving nonprofits can stay in business and provide families with the foods, services, and resources they need. With these first-in-the-nation commercial protections now signed into law, California is fighting back against displacement and creating a national model for economic inclusion.” – Doug Smith, Senior Director of Policy and Legal Strategy, Inclusive Action for the City

“Today, small business owners around the state are cheering Gov. Newsom’s signing of SB 1103, a first of its kind bill designed to protect small businesses from displacement. SB 1103 is commonsense and a victory for all entrepreneurs, but particularly for those who too often carry the burden of displacement – including the smallest of small businesses, immigrant entrepreneurs, entrepreneurs of color, and entrepreneurs in low- and moderate-income communities.” – Carolina Martinez, Chief Executive Officer, CAMEO Network

“We celebrate Gov. Newsom’s signing of SB 1103, which sets a model for the nation on how to protect small businesses and community-serving nonprofits from displacement. These commercial protections will make an immediate impact on the communities we serve, as successful small businesses and nonprofits anchor our local economies and contribute to the overall health and safety of our communities.” – Jassmin Poyaoan, Program Director of the Economic Justice Practice, Lawyers’ Committee for Civil Rights of the San Francisco Bay Area

“SB 1103 is a big win for small businesses across California because smaller firms are particularly vulnerable to displacement due to unexpected or unreasonable rent increases. We should do everything we can to keep the smallest businesses thriving in their local communities, and SB 1103 will go a long way toward making that happen.” – Bianca Blomquist, California Director, Small Business Majority

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