California Invests $7.5M in Immigrant Entrepreneurship

Funding Approved for Social Entrepreneurs for Economic Development (SEED) 3.0 Grant Program

SACRAMENTO, CA –  In the new state budget for Fiscal Year 2025-26, the California State Legislature and Gov. Gavin Newsom approved $7.5 million to continue investing in entrepreneurship for immigrant workers through the Social Entrepreneurs for Economic Development (SEED) program. This funding enables community-based organizations to provide entrepreneurship training, technical assistance, and microgrants to immigrants and individuals with limited English proficiency (LEP). 

The Economic Mobility for All (EM4A) Coalition and SEED co-sponsors – California Immigrant Policy Center (CIPC), Immigrants Rising, Inclusive Action for the City, and Democracy at Work Institute – led the successful advocacy for this funding. The coalition is grateful for the leadership of Assemblymember Juan Carrillo and the California Latino Legislative Caucus for their role in advancing immigrant entrepreneurship as a priority during these challenging times.

Established in 2020, SEED is one of the most successful small business development programs in California. With SEED 1.0 and SEED 2.0 investing a combined $30 million over its first two iterations, SEED has empowered immigrants throughout California to start and grow businesses, improving people’s economic stability and mobility. 

As we continue to see immigrants struggle to make ends meet as a result of federal attacks, SEED is a critical pathway to economic mobility that needs to be expanded for more individuals. 

“As an immigrant, I have seen firsthand the significant contributions immigrants make to our state’s economy and communities. We are business owners, job creators, and drivers of innovation. Programs like the SEED grants are a smart and strategic investment, especially as the cost of living rises because they help immigrant entrepreneurs launch and grow businesses that strengthen local economies. Continued support for initiatives like SEED is essential for creating equitable opportunities and sustaining economic growth across our state.” said Assemblymember Juan Carrillo, SEED sponsor.

California is home to the largest population of immigrants in the country. Their contributions power the state’s economy, with immigrants making up 40.3% of all entrepreneurs and 880,900 immigrant-owned businesses generating $28.4 billion in business income. Their businesses help position California as the fourth-largest economy in the world. 

Immigrant entrepreneurs reflect on the impact of the SEED program:

• “The SEED grant was a turning point for our cooperative. It gave us the foundation to grow… More than the funding, it gave us hope and confidence that our community’s dreams were possible. We are deeply grateful,” said Dina E., member-owner of a home-care cooperative.
• “Thanks to the SEED microgrant we received…  [we were] able to purchase a taxi that now generates income for our worker-owned cooperative. This investment has helped us cover key operational costs and move toward financial sustainability, proving the power of SEED in fueling immigrant-led economic opportunity,” said Ahmed M., member-owner of a taxi cooperative.
• “The SEED initiative isn’t just a funding opportunity, it’s a tool for economic justice. It affirms that entrepreneurs, especially those of us who identify as LGBTQ+, are leaders, innovators, and job creators who deserve support,” said Christian E., Entrepreneur and PhD student. 

While this is a step in the right direction, more support is needed. The four co-sponsor organizations leading this advocacy effort reflect on what this victory means for California’s economy and small entrepreneur communities:

• “Immigrants are the economic engine that drives many of the state’s leading industries, but now the Trump administration is attacking and disrupting these same communities by ending federal programs, such as TPS, that protect them from deportation and give them work authorization to sustain themselves and their families. At this time, programs such as SEED that provide resources like training, technical assistance, and microgrants to help immigrants start or grow their own businesses have never been more crucial. We commend the governor and the legislature for a budget that provides funding for this program that empowers immigrant entrepreneurs and allows their businesses to flourish in the Golden State. We will continue to advocate for increased funding that would allow the SEED program to expand and grow further,” said CIPC Executive Director Masih Fouladi. 
• “This investment in SEED is a powerful affirmation of what we’ve long known to be true: when we invest in immigrant communities, we all thrive. SEED has already transformed thousands of lives by turning entrepreneurial dreams into real, income-generating businesses. At a time when immigrants face growing economic uncertainty and are increasingly shut out of traditional pathways to work, SEED provides a vital, inclusive alternative that centers dignity, self-determination, and community wealth,” said Dr. Iliana Perez, Executive Director, Immigrants Rising.
• “At the heart of our economy, immigrant entrepreneurs drive job creation, strengthen communities, and foster innovation,” said Luz Castro, Associate Director of Policy at Inclusive Action for the City. “Initiatives like SEED are essential to bolstering their success by providing training, grants and technical assistance — enabling entrepreneurs to grow and sustain thriving businesses. This investment by the State empowers immigrants across California to drive local economic growth, and we are proud to support this work to advance economic mobility for immigrant entrepreneurs.”
• “California SEED’s groundbreaking model of public investment in immigrant entrepreneurship, in particular worker ownership, contributes to raising wages, improving working conditions, and promoting worker self-determination. It invites us to imagine what increased commitment to worker ownership could do for our communities, especially for excluded workers. Worker cooperative businesses stand as striking examples of how businesses created, owned, and driven by workers can and do make a real difference in workers’ lives,” said Vanessa Bransburg, Co-Executive Director, Democracy at Work Institute.

About the Economic Mobility for All Coalition 

The Economic Mobility for All (EM4A) Coalition is comprised of over 60 organizations across California committed to expanding access to career, training, and education opportunities for all Californians regardless of immigration status.

###