Existing law defines microenterprise as a sole proprietorship, partnership, or corporation that has fewer than 5 employees, including the owner, and generally lacks access to conventional loans, equity, or other banking services, as provided. Existing law distinguishes a microenterprise from a small business or microbusiness. Existing law encourages specified local agencies to access, include, and promote local partnerships that invest in microenterprise development, as provided. Existing law defines a “microenterprise development provider” to mean a nonprofit or public agency that provides self-employment training, technical assistance, and access to microloans to individuals seeking to become self-employed or to expand their current business.

This bill would modify the definition of microenterprise to also include a limited liability company, increase the number of employees to 5 or fewer, and require that the entity generally lack sufficient access to loans, equity, or other financial capital. The bill would delete those provisions expressly distinguishing a microenterprise from a small business or microbusiness. The bill would modify the definition of microenterprise development provider to also include a nonprofit organization or public agency that provides self-employment training, technical assistance, and access to microloans to a microenterprise seeking to expand its current business.