Lina Mills remembers arriving in the U.S. from Colombia at 16, having never worked before.

Upon arrival, she found employment in restaurants. “I had to provide for myself,” Mills told CalMatters recently. “I essentially ran away from home.”

She knew some English, improved her language skills, and advanced to the role of catering manager. Now, 36 years later, she owns two businesses in San Francisco.

Mills previously employed a dozen staff members at Creative Ideas Catering and Creative Ideas Cafe but had to lay everyone off during the COVID lockdowns and the subsequent economic downturn. She has since rehired some employees—currently, she has 10 on staff and plans to hire more. “I want to not only rehire former employees but also create additional jobs.”

Mills has utilized programs that support small business owners with financing, marketing, accounting, and social media skills, which allowed her to adapt by participating in food takeout pop-ups during the pandemic. Grateful for the assistance from the Small Business Development Center and the Renaissance Entrepreneurship Center, she said, “I don’t know what I’d do without them.”

However, such support for small businesses is now at risk in California. The Renaissance center, which receives state funding through the Small Business Technical Assistance Program, might face a reduction in funding due to the state’s significant budget deficit. Since 2018, the program has aided centers supporting under-resourced small businesses in low-income, rural, and disaster-stricken areas, as well as those owned by women, people of color, and veterans. Governor Gavin Newsom has proposed cutting the program’s budget by 56%, which amounts to $13 million.

Mills recently testified to state lawmakers, urging them to preserve funding for the program. Last week, small business leaders and advocates traveled to the Capitol to lobby against the proposed cuts. In response, state legislators released their proposed budget over the weekend, which rejects the governor’s proposed reductions and restores the program’s full annual funding of $23 million.

On Thursday, the Legislature passed a placeholder budget, with the governor and lawmakers expected to continue negotiating their budget priorities through the end of the month.

Alex Stack, spokesperson for Governor Newsom, told CalMatters that budget negotiations are still in progress and highlighted: “Gov. Newsom has invested billions in small business grants, tax relief, and other incentives in recent years.”

When Newsom presented his revised budget proposal in early May, he stated, “These are programs I’ve long supported. It’s not work anyone enjoys, but it’s necessary to balance the budget.”

The staff of Assemblymember Jesse Gabriel, the Encino Democrat and chair of the Assembly budget committee, did not respond to inquiries about this specific program. The California Office of the Small Business Advocate, which manages the program, declined to comment.

If the program’s funding is reduced by more than half, it could impact “75,000 small businesses annually that contribute to the state’s tax base,” warned Carolina Martinez, CEO of the CAMEO Network, a small business advocacy organization.

According to the Public Policy Institute of California, over 90% of California businesses employ fewer than 10 people, while 7% have between 20 and 100 employees.

“Capital alone isn’t sufficient,” Martinez said, emphasizing that small business owners also need “clear business plans and a well-defined value proposition—essential elements for success and growth.” She noted that small business development centers and similar organizations are crucial in providing this support, especially for first-generation entrepreneurs and immigrants who may lack necessary networks and expertise.

Ernesto Delgado, a successful entrepreneur, has praised the state's technical assistance programs. “I was able to access accountants, legal, and HR support without any cost,” Delgado said. “I couldn’t afford these services otherwise.” He noted that these resources helped him develop an “evolving business plan.”

Starting with one restaurant, Delgado now owns six in the Sacramento area, employing about 150 workers during peak times. His journey began with a Small Business Administration course for emerging leaders, leading him to management and entrepreneurship classes, and eventually culinary school.

“I wouldn’t be where I am today without these programs and the connections I’ve built,” said Delgado, who owns restaurants including Mayahuel and Octopus Peru. “I don’t think I would’ve survived COVID without this support.”

In San Diego, Rodnia Attiq, a restaurant owner, is leveraging assistance from APEX Accelerators, a small business accelerator focused on government contracts, to secure a major client: the U.S. Coast Guard, which needs a small business to provide daily meals at its San Diego station.

For El Borrego, a family-owned business specializing in lamb tacos with nine employees, applying for a government contract was a formidable challenge, according to Attiq.

“You can’t imagine how difficult it was,” she said. Despite APEX’s assistance—funded in part by the state’s technical assistance program—completing the 140-page proposal took her “10 days, working nonstop until 11 p.m. or midnight.”

Attiq believed the effort was essential. “The restaurant industry is changing rapidly,” she said. “It’s tough. You need to explore every possible way to stay in business.”

Now, Attiq is awaiting the outcome of her contract bid with optimism. “I’ve already planned my route and know what time I’m going to wake up,” she said.