The bill establishes the "Small Business Disaster Relief Program" aimed at providing grants to small businesses affected by disasters declared by the governor, specifically in situations where federal funding or insurance reimbursements are unavailable. The program will cover various operating expenses, property repairs, and other business-related costs resulting from the disaster. To qualify for a grant, businesses must submit an application detailing their operations, the impact of the disaster, employment numbers, and existing financial resources. The economic development department will oversee the application process and grant distribution, prioritizing businesses with the greatest financial need.

Additionally, the bill creates the "Small Business Disaster Relief Fund," a nonreverting fund in the state treasury, which will be funded through appropriations, gifts, and donations. The economic development department is tasked with administering this fund, which is allocated $1 million from the general fund for fiscal year 2027 and subsequent years to support the grant program. The department is also required to report annually on the program's performance, including the number of grants awarded and the industries represented by recipients.