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The Brief

The most important stories for you to know today
  • Federal plan puts student support at risk
    Students watch a presentation about the Upward Bound program in a college lecture hall.
    Students at a National TRIO Day Celebration at Cal Poly Pomona.

    Topline:

    Across California, TRIO programs are transforming summer experiences for low-income and first-generation students. These federally supported initiatives have long served as a critical lifeline for students navigating college pathways, but a recent proposal from the Trump-era budget aims to cut them entirely.

    Empowering first-gen students: TRIO programs like Upward Bound and McNair Scholars offer mentorship, academic support, and real-world college experiences to over 100,000 students across California, often changing lives through early intervention and sustained guidance.

    Federal funding under threat: Despite strong bipartisan backing and a billion-dollar annual budget, TRIO’s future could be at risk as a defunding proposal resurfaces, with critics labeling the 1960s-era initiative as outdated and unnecessary.

    Read on... for how programs at California colleges are responding.

    Around California this summer, low-income and first-generation students are staying in college dorms for the first time. High schoolers are camping beside the Klamath River. Undergraduates are presenting research at a symposium for budding scholars in Long Beach.

    All are part of federally funded TRIO programs — like Upward Bound and McNair Scholars — based on California campuses, from rural Columbia College neighboring Yosemite National Park to private four-year institutions in Los Angeles like the University of Southern California. TRIO reaches children as young as middle school, preparing them to enroll in college and providing mentorship, academic advice and research opportunities when they do. In California, the programs served over 100,000 participants in the 2023-24 academic year.

    “I really don’t think I could have made it through City College [of San Francisco] without them,” said Ekaterini Stamatakos, 22, a psychology major and TRIO student who earned an associate degree and then transferred to UCLA, where she will start her junior year this year. “I think these kinds of programs really go beyond whatever they might say on their profiles or the paragraphs that they have on their webpages — it really does make such an impact on students’ lives.”

    But hanging over TRIO programs like Talent Search and Student Support Services is a Trump administration proposal to eliminate them. If Congress enacts that plan, all TRIO Student Support Services — such as tutoring in reading, help with college applications and workshops in financial literacy — would be defunded starting in fiscal year 2026. Their funding is uncertain until Congress finalizes the appropriations bill later this year.

    TRIO, whose name derives from an original group of three programs but now includes eight, has largely prevailed in past funding battles. With an annual budget now exceeding $1 billion, it continues to garner significant bipartisan support. But a White House budget request released in the spring argues that TRIO programs, rooted in 1960s anti-poverty policy, are now “a relic of the past.”

    “Today, the pendulum has swung and access to college is not the obstacle it was for students of limited means,” the budget request says. Colleges “should be using their own resources to engage with K-12 schools in their communities to recruit students, and then once those students are on campus, aid in their success through to graduation.”

    The threat has mobilized TRIO supporters to redouble a public awareness campaign aimed at persuading lawmakers to maintain the programs. In California, there were about 450 TRIO programs in the 2023-24 academic year, an EdSource analysis of federal data shows, with most of that funding flowing to programs housed at more than 100 colleges and universities.

    The proposal to sever funding for TRIO comes as the Trump administration has notched a U.S. Supreme Court victory that clears the way for mass layoffs at the U.S. Department of Education. This month, California joined a coalition of states suing for the release of $6.8 billion in federal school funding that has been frozen by the federal government. Since January, the White House has enacted or attempted a host of other changes affecting areas like financial aid and how the federal government interprets civil rights law.

    TRIO programs based on California campuses like Sonoma State University, Cal Poly Pomona and UC Davis eachreceive millions of dollars annually and are funded to serve thousands of participants per campus, the analysis shows. Smaller TRIO programs, many at community colleges, may work with dozens or hundreds of students on a budget of less than $300,000.

    At Cal Poly Humboldt, high school students and rising college freshmen this summer read an August Wilson play before venturing on a field trip to see it performed live at the Oregon Shakespeare Festival. At Cal Poly Pomona, peer coaches prepare presentations for fellow students on such topics as artificial intelligence and summer internships. At Columbia College, a community college 50 miles northeast of Modesto, a TRIO director said she’s worked with everyone from 14-year-olds in dual enrollment programs to 72-year-olds advancing toward master’s degrees.

    Decades of consensus meets partisan divides

    Studies generally suggest TRIO has a positive effect on academic outcomes, such as enrolling in college or completing a degree. Supporters also tout the success of alumni — some of whom have gone on to become lawmakers, astronauts, and in many cases, leaders of local TRIO programs themselves — as evidence of a positive impact on families and communities.

    “I have alumni whose kids are now in college and thriving, or have graduated college,” said Rafael Topete, who leads the TRIO Student Support Services Program at Cal State Long Beach.

    But this is not the first time TRIO programs have faced Republican-led challenges. Under President Ronald Reagan, TRIO advocates blocked an attempt to halve the program’s budget. Bipartisan support again thwarted a bid to eliminate TRIO funding during the Clinton administration.

    TRIO’s critics point to a U.S. Department of Education-sponsored 2009 study finding that Upward Bound did not have a statistically significant impact on overall postsecondary enrollment. (The Council for Opportunity in Education, which advocates for TRIO and other college access programs, later sponsored a rebuttal study, which found Upward Bound had a strong positive impact on students.)

    Two recent U.S. Government Accountability Office reports argue that the federal Department of Education could improve how it evaluates TRIO. The department has said further steps to verify data depend on the agency having adequate staff.

    A student in a classroom raises a finger to speak while others listen or take notes.
    Educational Talent Search and Cal-SOAP students at Cal State Long Beach attend a workshop to help rising seniors get ready for college applications and financial aid.
    (
    Courtesy of Jesus Maldonado
    )

    Education Secretary Linda McMahon this spring resurrected such accountability arguments to justify defunding the programs. “I just think that we aren’t able to see the effectiveness across the board that we would normally look to see with our federal spending,” McMahon said at a June budget hearing.

    People who work for TRIO programs object to those criticisms. In interviews, many named by memory the metrics they report as a condition of receiving federal funding, like high school graduation rates and college enrollment statistics. “Every year, we report data to verify we are doing what we said we would do,” said Kathy Kailikole, who has had a 30-year career in TRIO programs and currently works at San Diego State University.

    There are signs that TRIO remains a point of agreement in a Congress more often divided along party lines. Federal funding for TRIO has climbed from $838 million in 2014 to almost $1.2 billion in 2023. And of the 130 members in the Congressional TRIO Caucus, 26 are Republicans. U.S. Sen. Susan Collins of Maine and U.S. Rep. Mike Simpsonof Idaho are among the Republicans who have vocally questioned cuts to TRIO.

    Today’s bitter ideological divides may test that consensus.

    In May, three Upward Bound grantees outside California received notice from the Department of Education that their funding would not be continued due to conflicts with Trump administration priorities, said Kimberly Jones, president of the Council for Opportunity in Education.

    A copy of one such cancellation letter provided to EdSource by Jones said the grants “violate the letter or purpose of Federal civil rights law; conflict with the Department’s policy of prioritizing merit, fairness, and excellence in education; undermine the well-being of the students these programs are intended to help; or constitute an inappropriate use of federal funds.”

    Overcoming distance and doubt in rural California

    Jen Dyke directs the Upward Bound program at Cal Poly Humboldt where, years ago, she was once a student. Today, she travels hundreds of miles to recruit students from rural Hayfork, South Fork and Hoopa. It’s a region where rural schools often contend with high teacher turnover rates, low math test scores and an uncertain economic outlook, Dyke and her colleagues said.

    “Timber is already gone. Fishing is already gone. Tourism is now something that is not super strong because of wildfires,” Dyke said during a lull in Upward Bound’s summer academy, which brings 27 high school-age students on campus to take classes and live in dorms. “So these areas that we serve are, once again, facing dismal futures if we also cut TRIO.”

    Cal Poly Humboldt’s TRIO initiatives are among dozens of TRIO programs in California — and more than 500 in the U.S. — that reach participants in predominantly rural communities and remote towns, an EdSource review of federal data found.

    Rose Sita Francia, who directs another Cal Poly Humboldt TRIO program called Talent Search, tries to expose students as early as sixth grade to careers that give them a reason to consider postsecondary education. The first step, she said, is to put college on the map for them — literally.

    “Many students don’t know where Arcata is, where Cal Poly Humboldt is located,” she said. “And so we have teachers ask us regularly, ‘Will you show us some geography of college-going, and will you talk to us about trade school options as well?’”

    A large group of people poses together in front of redwood trees during a nature outing.
    Associate degree students at Columbia College tour a Humboldt County forest while on a trip to visit Sonoma State University and Cal Poly Humboldt on Sept. 17, 2024.
    (
    Courtesy of Anneka Rogers Whitmer
    )

    Anneka Rogers Whitmer oversees TRIO programs housed at Columbia College, more than an hour’s drive from the two nearest four-year universities, Stanislaus State University and UC Merced. The college’s Educational Opportunity Center serves more than 1,000 people across five counties with just two staff members, who visit places like prisons and social service agencies. The TRIO staff have had to overcome distrust of college degrees, Whitmer said, by offering advice on how to apply for financial aid and where to find vocational training.

    “We’re an education desert, no doubt,” she said, “but we just have to think more creatively about how we’re going to reach the folks.”

    ‘It’s easy for students to get lost or discouraged’

    The program Ghislaine Maze coordinates at City College of San Francisco may be called the TRIO Writing Success Project, but it does much more than provide writing workshops and embedded tutors in English classes.

    A graduate and a faculty member smile for a selfie in caps and gowns.
    Ekaterini “Kat” Stamatakos and Ghislaine Maze pose for a photo at the City College of San Francisco commencement ceremony in May 2025.
    (
    Courtesy of Ghislaine Maze
    )

    “So many students are trying to figure things out on their own, on the fly, with just a few hours on campus,” said Maze, whose program is funded to serve 310 students on a budget of roughly $485,000 a year. “It’s easy for students to get lost or discouraged.”

    Tight campus budgets may leave other academic advisers on campus so overbooked that students struggle to get appointments, she said. A trusted TRIO mentor can help navigate financial aid and plan a student’s academic schedule. “That’s where a program like ours kind of fits in,” Maze said.

    Before Ekaterini Stamatakos got to City College, she attended four high schools. She thinks she must have missed hundreds of days of school in that time, a consequence of housing instability. She struggled academically, but finished at a credit recovery school.

    Stamatakos, who goes by Kat, was retaking an English class at City College when a tutor from the TRIO Writing Success Project explained that it provided feedback on writing assignments, mentorship and a place to hang out at the library, complete with snacks. “This is perfect,” Stamatakos thought. “I’m just going to basically live there.”

    With assistance from a writing tutor, Stamatakos earned an ‘A’ in the course. “I don’t think I ever imagined that I would get an ‘A’ after my years of failing classes,” she said.

    EdSource is an independent nonprofit organization that provides analysis on key education issues facing California and the nation. LAist republishes articles from EdSource with permission.

  • Sale for locals starts Thursday
    The Olympic cauldron is lit at the Los Angeles Memorial Coliseum in January ahead of ticket registration.

    Topline:

    Tickets to the 2028 Olympics in Los Angeles will go on sale Thursday. The much-anticipated drop is the first opportunity to get seats at Olympic events including the opening and closing ceremonies — and it's for locals only.

    What's happening: The sale will be open to those who pre-registered to buy tickets, and not everyone will be chosen. Fans will be randomly selected and given a time slot to buy tickets.

    Locals go first: Fans with eligible Southern California or Oklahoma City ZIP codes will be notified via email if they're selected for a slot to buy tickets in the pre-sale, which runs April 2 to 6. After that, fans from around the world will have their first chance to get tickets from April 9 to 19.

    Read on… for all the details on how the ticket sales will work.

    Tickets to the 2028 Olympics in Los Angeles will go on sale Thursday.

    The much-anticipated drop is the first opportunity to get seats at Olympic events, including the opening and closing ceremonies — and it's for locals only. The sale will be open to those who pre-registered to buy tickets, and not everyone will be chosen. Fans will be randomly selected and given a time slot to buy tickets.

    Fans with eligible Southern California or Oklahoma City ZIP codes will be notified via email if they're selected for a slot to buy tickets in the pre-sale, which runs April 2 to 6. After that, fans from around the world will have their first chance to get tickets from April 9 to 19.

    Those who are chosen from the draw will be notified 48 hours ahead of their time slot to buy tickets online, and will have two days to select and purchase their tickets. That means people will know as early as Tuesday if they've been selected to buy tickets.

    Each fan can snag up to 12 tickets, and an additional 12 tickets to the Olympic soccer tournament. Tickets to the opening and closing ceremonies are limited to four per person.

    If you aren't chosen for the first ticket drop, there will be more in the months to come. Plus, come 2027 there will be a re-sale market for tickets.

    How the draw works

    If you get an email that you've been selected to buy Olympics tickets, it will include the time window you have to purchase tickets and a link to the website where you can buy them.

    You'll have 48 hours to buy tickets, but LA28 recommends logging in as soon as you can to get the best ticket options. Once tickets are in your cart, you'll have 30 minutes to buy them.

    LA28 warned fans that they could encounter online queues when buying tickets. Some people reported this when registering for tickets, too.

    The ticket site will allow fans to search events by sport, venue and location. Once you choose an event, you'll book in a seating category — but actual seat numbers will be assigned later on.

    Fans who want to game out their purchases ahead of time can look at the competition schedule here.

    If you purchase tickets in the locals pre-sale, the billing address for the card you buy the tickets with will need to have one of the qualifying local ZIP codes. Here in Southern California, that includes people in L.A., Orange, Riverside, San Bernardino and Ventura counties.

    Prices

    Prices for Olympics tickets will vary widely. The cheapest tickets will be $28 a pop, with the priciest tickets upwards of $1,000, according to Olympic organizers.

    The majority of tickets to the Olympic Games will run into triple digits. According to LA28, half the tickets will be more than $200 and around 5% of tickets will be more than $1,000. In total, there will be 14 million tickets available across the Olympics and Paralympics.

    What exactly different events will cost — and how expensive tickets might get — isn't clear yet. An example in a Youtube explainer posted by LA28 showed ticket options for Track and Field preliminary competitions at the Coliseum ranging from $28 to $1,035.65.

    According to the video, there will also be standing room-only tickets for some events.

    Tickets to the Paralympic Games will go on sale next year.

  • Sponsored message
  • The center to revive free lunch program
    A two-story building with a red-painted wooden beam design and signage on top of its entrance that reads "Koreatown Senior and Community Center."
    The Koreatown Senior and Community Center will revive its free lunch program later this year thanks to a new partnership with the YMCA.

    Topline:

    The Koreatown Senior & Community Center is bringing back its free lunch program for seniors, this time with its longest guaranteed run yet.

    More details: The center is partnering with the YMCA under a two-year agreement, which would allow the program — for the first time — to run continuously for that long. In the past, the center’s free lunch program typically lasted only a few months at a time before funding cuts forced it to scale back or stop temporarily. If all goes as planned, the program is expected to relaunch by late April.

    Why it matters: The program is returning as meal services for seniors across L.A. face ongoing funding challenges.

    Read on... for more about what the return of the free lunch program means for seniors and the community.

    This story first appeared on The LA Local.

    The Koreatown Senior & Community Center is bringing back its free lunch program for seniors, this time with its longest guaranteed run yet.

    The center is partnering with the YMCA under a two-year agreement, which would allow the program — for the first time — to run continuously for that long. In the past, the center’s free lunch program typically lasted only a few months at a time before funding cuts forced it to scale back or stop temporarily.

    If all goes as planned, the program is expected to relaunch by late April.

    “We’re committed to identifying funding beyond the two years,” said Mario Valenzuela, chief mission advancement officer at the YMCA. 

    The program is returning as meal services for seniors across L.A. face ongoing funding challenges. In September, LA Public Press reported that some senior centers were cutting back on meals as pandemic-era funding expired and longer-term funding looked uncertain. Valenzuela said that across the YMCA’s 29 food distribution sites in the county, seniors now make up the majority of those seeking assistance.

    The YMCA was awarded $7.5 million last year to address food insecurity, and Valenzuela said the Koreatown senior lunch program is one way those funds are being used.

    The center launched its free lunch program in January 2024 with about 200 meals a day, funded by the city’s Department of Aging. But the number of meals steadily declined, from 200 to 50, before the program ended in early January.

    Hyun-ok Lee, president of the board of the Koreatown Senior & Community Center, said the sudden halt was difficult for people who had come to rely on the meals.

    “When the meal service suddenly stopped, a lot of seniors and people in the community really felt it,” Lee said.

    After the program stopped, the center began looking for new funding sources. That effort eventually led to a connection with the YMCA, facilitated by Assemblymember Mark Gonzalez, according to both the center and the YMCA.

    “It was important for the Assemblymember to ensure that meals are culturally sensitive, especially for the seniors in our district, so we were able to connect the YMCA with KSCC and reinstitute the daily distribution of Korean lunch boxes at KSCC,” Nina Suh-Toma, Gonzalez’s field representative, said. 

    Valenzuela said the organization stepped in after hearing from multiple senior centers that funding for services was being cut.

    The Koreatown senior center’s free lunch program will cost between $210,000 and $250,000 a year and will initially provide 100 meals a day from Monday to Friday, with the goal of eventually increasing that number to 200.

    Valenzuela said the program is part of a broader shift at the YMCA to work more directly in communities. 

    “We can no longer just focus within our four walls,” he said. “We really have to meet the community where they’re at.”

    The YMCA and the center are still working out the details of the partnership, including how meals will be distributed. Valenzuela said they’re currently looking for a food vendor that can provide Korean meals that are both culturally appropriate and meet nutritional guidelines.

    Valenzuela said he’s already seeing growing demand for these services. 

    “I think the emerging need is there are a lot of cuts coming down the pipeline particularly to social services and the most vulnerable population right now are seniors,” he said. “We’re seeing it across L.A. County.”

  • How theater troupe fought the patriarchy
    A black and white newspaper clipping featuring two photos side by side. The photo on the left show two young women standing side by side with the one in the front holding a notebook and smiling. The photo on the right shows four young people standing together acting out a scene in a play. One woman is wearing a sign that says sister.  Another woman is dressed as a man and wears another sign. Two other woman are facing each other and talking. The newspaper headline reads: Campus, Government Reform is Chicana Goal.
    A young Felicitas Nuñez while she was attending San Diego State College, now known as San Diego State University, where Teatro Chicano was born.

    Topline:

    One of the many tools of the farmworker movement in the 1960s was Teatro Campesino, a traveling theater troupe that told the plight of the farmworkers through “actos,” or short skits.

    Why it matters: It was a mostly male-dominated space until a group of Chicanas came together to tell the stories of women who were also part of the civil rights and farmworker movement.

    The backstory: Teatro Chicana was the product of Felicitas Nuñez, Delia Ravelo, Laura Garcia and dozens of other first generation college students attending San Diego State College, now known as San Diego State University, in the early 1970s. Their work is documented in the memoir Teatro Chicana.

    Read on... for more on the farmworker movement and the troupe's role.

    One of the many tools of the farmworker movement in the 1960s was Teatro Campesino, a traveling theater troupe that told the plight of the farmworkers through “actos,” or short skits.

    It was a mostly male-dominated space until a group of Chicanas came together to tell the stories of women who were also part of the civil rights and farmworker movement.

    Teatro Chicana was the product of Felicitas Nuñez, Delia Ravelo, Laura Garcia and dozens of other first generation college students attending San Diego State College, now known as San Diego State University, in the early 1970s. Their work is documented in the memoir Teatro Chicana.

    “We protested the action and behavior of the males in MEChA (Movimiento Estudiantil Chicano de Aztlán) because we didn’t agree with their disrespect, abuse and a lot of that was coming from the older Chicanos like people that were already professors, counselors and in administration,” Nuñez said.

    One of their first performances was a seminar that the women put together for their mothers who visited them on campus called Chicana Goes to College.

    “We just wanted to present how a young woman wanted to get out of a traditional home, very religious kind of atmosphere,” Nuñez said. “But towards the end, you know, the Chicana struggles through getting out of the house, struggles in college, and then struggles within the movimiento Chicano. She makes up her mind that she's gonna get educated regardless of being put down.”

    Teatro Chicana performed at a UFW convention, in fields, anti-war demonstrations, high schools and anywhere they could. Their plays like Bronca challenged men to see women as more than notetakers, cooks and childcare.

    Of course, it’s hard to talk about the farmworker movement without mentioning the late César Chávez, who was recently accused of sexually assaulting girls and women. Nunez and Garcia said the news was devastating but not that surprising.

    “ If you look at the women in the teatro, out of the 17 women that wrote their memoir about 80% had been sexually molested, or abused within their families or a neighbor,” said Garcia. “ We need to talk about it in order to stop it.”

  • No more SBA loans for non-citizens
    A woman stirs ingredients in a pot in a restaurant kitchen with purple walls. The kitchen is shown through the server window.
    The change to SBA loans could have a huge impact on California, which has the most small businesses and the largest immigrant population in the nation.

    Topline:

    Non-U.S. citizens lose access to SBA funding for small businesses, which provide the bulk of new jobs in California.

    Why now: Green-card holders no longer qualify for loans from the Small Business Administration, eliminating a longtime source of financing for immigrants that advocates say will discourage job creation and harm the economy. The SBA limited access to its loans to U.S. citizens and nationals only starting in March, and expanded that policy to SBA-backed loans beginning in April. On top of that, any business that’s even partly owned by a permanent legal resident with a green card is no longer eligible for the loans.

    Why it matters: California — which has the most small businesses and the largest immigrant population in the nation — could be most affected. SBA loans have been important to immigrant entrepreneurs because they typically are low-interest and available to those without an established credit history. The agency has also backed loans by private funders, providing a government guarantee for people banks may deem riskier. Now, all those loans are off the table for owners and would-be owners of restaurants, bake shops, law practices, medical clinics, taxi medallions, nail salons and more who hold green cards.

    Read on... for more on what this means for California.

    Green-card holders no longer qualify for loans from the Small Business Administration, eliminating a longtime source of financing for immigrants that advocates say will discourage job creation and harm the economy.

    The SBA limited access to its loans to U.S. citizens and nationals only starting in March, and expanded that policy to SBA-backed loans beginning in April. On top of that, any business that’s even partly owned by a permanent legal resident with a green card is no longer eligible for the loans.

    California — which has the most small businesses and the largest immigrant population in the nation — could be most affected. SBA loans have been important to immigrant entrepreneurs because they typically are low-interest and available to those without an established credit history. The agency has also backed loans by private funders, providing a government guarantee for people banks may deem riskier. Now, all those loans are off the table for owners and would-be owners of restaurants, bake shops, law practices, medical clinics, taxi medallions, nail salons and more who hold green cards.

    Small business owners are responsible for 99% of net new jobs in the state, according to the California Office of the Small Business Advocate. Immigrant entrepreneurs make up 40% of the state’s business community and generated $28.4 billion in income in 2023, according to GO-Biz, the governor’s office of business and economic development.

    Small Business Majority, a national business advocacy group, wrote to the SBA in mid-March, urging the federal agency to reconsider the changes. The letter, signed by dozens of state and national groups and chambers of commerce, called the new policies "a misguided approach that ignores critical economic data underscoring the job creating power of the immigrant community."

    The SBA has a limited lending capacity, said Maggie Clemmons, a spokesperson for the agency. “The agency’s rule change will help ensure more American citizens have access to funding previously granted to noncitizens,” she said in an email.

    The SBA approved 3,358 loans for small businesses owned partly by a lawful permanent resident in fiscal year 2025, largely during the Biden administration, Clemmons said. That represented 4% of the 85,000 loans approved by the agency.

    In California, the changes could affect about 220,000 small business owners who hold green cards, said Carolina Martinez, chief executive of CAMEO Network, a national association of organizations that support small businesses.

    “The most important thing for us is to really understand that this SBA decision… is really bad for the American economy,” Martinez said.

    Pursuing the American Dream

    Cristina Foanene, a Romanian immigrant who arrived in the United States 20 years ago, was a green-card holder when she obtained an SBA loan in 2018 that allowed her and her husband to buy a building and expand their glass company, MCS Glass, in Fresno. They now have 30 employees.

    “The loan gave us an opportunity to create more jobs, to have an even greater impact in our community,” Foanene said. Their goal is to manufacture more products and create more positions, she added.

    She said she doesn’t know where the business would be today without the SBA loans they received over the years. They just signed their third loan last month, Foanene said, their first as American citizens.

    She called herself loyal to this country and said she’s sad that others like her may not have the same opportunities to pursue the American Dream by securing SBA loans while “respecting the laws.”

    “It literally breaks my heart,” Foanene said. “There are so many good people with good intentions. I feel it’s unfair.”

    Other entrepreneurs or independent contractors also lose a possible safety net that SBA loans once provided.

    “During the pandemic, these loans were crucial to people’s survival,” said Dung Nguyen, program and organizing director for California Healthy Nail Salon Collaborative, an organization that advocates for Vietnamese immigrants, many of whom work in the nail-salon industry. The group signed the Small Business Majority’s letter to the SBA.

    Nguyen said the nail-salon workers and owners who took out those loans during the pandemic are still paying them back.

    ‘A new kind of status’

    Kenia Zamarripa, spokesperson for the San Diego Regional Chamber of Commerce, which also signed the letter to the SBA, said this latest policy change is another example of how immigrants are more vulnerable as federal funds for other programs have been taken away. Her group and others are pushing for immigration reform that includes a standardized path to citizenship, she said.

    “This is a community that’s doing things the right way, looking for a legal path,” she said. “It’s like you’re punishing them for doing the right thing.”

    The SBA changes push green-card holders to “informality,” Zamarripa said. “What’s next? What other resources will be taken away? How else will immigrants continue to be targeted?”

    Others echo that concern.

    “This dialog is really challenging our concept of what undocumented means,” said Gabriela Alemán, a spokesperson for Mission Asset Fund, a San Francisco organization that supports and lends to small business owners. “These are community members that are now being pushed into a new kind of status.”

    Mission Asset Fund’s lending circles — modeled after the Mexican community-based lending practice called tandas — can provide up to $2,500 in loans to small business owners. The group just got its California lenders’ license and will eventually be able to provide larger loans, Alemán said.

    But it will be tough for groups like it to fill the gap left by the SBA’s new policies for permanent legal residents who may want to start or grow their businesses.

    “There are not any other options at this scale (that the SBA provides),” said Brian Kennedy Jr., entrepreneur ecosystem director at AmPac Business Capital, a Los Angeles-area community development financial institution and SBA partner. “We’re talking about $35,000 up to $30 million.”

    What’s next

    Many small business owners already use — and may increasingly rely on — community development financial institutions and other lenders whose mission is to help people with limited options, credit histories and savings.

    They could also turn to the state for help. State-funded options include a small business loan guarantee program through its IBank, and programs through the treasurer’s office that reduces risks to lenders by pledging state funds as collateral, or contributing to loan-loss reserves.

    Microenterprise Collaborative of Inland Southern California works with lenders, technical assistance providers and community partners to help small business owners in Inland Southern California.

    Pamela Deans, the group’s executive director, said the SBA’s policy change will alter how the organization refers entrepreneurs to sources of capital. Rather than pointing them to “a relatively straightforward” SBA process, she said the group will have to inform them of a more fragmented set of options and warn them about predatory lending.

    “Many of these would‑be owners will have a much harder time piecing together enough safe, affordable capital to lease a space, buy equipment or cover early working capital — so the taquería, the child care business, the trucking startup may never open in the first place,” Deans said.

    Bianca Blomquist, California director for Small Business Majority, also is concerned about small business owners turning to unscrupulous lenders. She said her group found out recently that an owner of a child care business in downtown L.A. took out a $10,000 loan at what she thought was 13% interest. It was actually closer to 250%.

    Other advocates are hoping philanthropy and impact investors will step up and make more capital available to small lenders.

    “Women, entrepreneurs, immigrants and communities of color always have had to think outside the typical paths,” said Leticia Landa, executive director of La Cocina, a small business incubator in San Francisco. “I do hope, especially in California, that we’re going to come up with something.”

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.