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California’s SEED program helps launch more than 1,900 businesses, supporting local communities and economies

November 2, 2026

SACRAMENTO — The Labor and Workforce Development Agency (LWDA) and the Employment Training Panel (ETP) today announced that California’s Social Entrepreneurs for Economic Development (SEED) program has supported the creation of over 1,900 new businesses, including worker cooperatives, since 2021.

SEED – a first-of-its-kind small business development program – empowers U.S. citizens, immigrants and refugees who aspire to start or grow a small business in California. Through trusted community organizations, the program provides funding, training, and individualized support to help participants overcome barriers such as limited English proficiency and other challenges that can make securing employment difficult. SEED funding features two award types: entrepreneurship and worker cooperatives.

“SEED is an investment in the talent and determination that powers the Golden State,” said Stewart Knox, Secretary of the California Labor & Workforce Development Agency. “Through SEED, we are creating jobs, strengthening our communities, and building a more inclusive and resilient California.”

“This investment enhances the capacity of community organizations that not only recognizes the potential of U.S. citizen and immigrant entrepreneurs but also actively equips them with the tools necessary for their success,” said Dr. Jessica Grimes, ETP Executive Director. “These organizations meet individuals where they are and help them build strong, sustainable businesses that ultimately strengthen both local California communities and contribute meaningfully to the resilience of our state economy. It is a privilege to continue the SEED program and to stand alongside organizations whose dedication creates lasting, transformative impact.”

Since SEED launched in 2021, California has invested $37.5 million in the program to fund training, technical assistance, program implementation, and microgrants.
The first three funding rounds provided $19 million in microgrants, resulting in:

  • 1,903 new businesses created
  • 1,413 existing businesses supported
  • 2,392 individuals employed by microgrant recipients
  • 3,400 microgrant recipients across California

ETP is expected to release $10.8 million in Round 4 of funding in early 2027.

“The SEED program unlocked economic opportunities that had once seemed out of reach for me. With SEED, I was able to turn my entrepreneurship dreams into reality; a pathway that for immigrants comes with many unique challenges. SEED represents more than just dollars; it represents an investment in people like me who are ready to share their creativity, talent, and services, but just need that launchpad. We have seen, without a doubt, the incredible ways that SEED has positively transformed communities, local economies, and individual lives; it is now my hope that SEED will continue to propel entrepreneurs across our state.” -Cathy Fairweather, SEED recipient and owner & founder of Cathy’s House of Bread

“SEED demonstrates what’s possible when entrepreneurship opportunities are accessible to everyone, regardless of immigration status. Across California, immigrant entrepreneurs are building businesses, creating jobs, strengthening local communities, and contributing to our state’s economic prosperity. We’re proud to partner with LWDA, ETP, and our community partners to expand these opportunities, and we look forward to building on SEED’s success to empower even more entrepreneurs to turn their ideas into thriving businesses.” -Dr. Iliana Perez, Executive Director, Immigrants Rising

“The State of California is at the forefront of investing in worker ownership for communities locked out of good jobs and business ownership. Over the past five years, the California Social Entrepreneurs for Economic Development Program (CA SEED) has invested in worker ownership as a pathway for economic stability and mobility for excluded workers. We see the powerful impacts that worker cooperative businesses in traditionally low-wage industries have on worker-owners, from higher wages to lower turnover rates, access to profit sharing, and realized health benefits. The CA SEED Program is paving the road for an inclusive economy where the people who power our economy can share in its success.” -Vanessa Bransburg, Co-Executive Director, Democracy at Work Institute

“Immigrants and refugees are helping power California’s economy, yet many face some of the greatest barriers to traditional employment and entrepreneurship. SEED breaks down those barriers by combining direct grants with the training and support entrepreneurs need to succeed. The results speak for themselves: more than 1,900 new businesses and nearly 2,400 people employed. As the world’s fourth-largest economy, California should continue leading the way in expanding economic opportunity for all, regardless of immigration status. Sustained investment in SEED means more small businesses, more jobs, and stronger communities across our state.” -Masih Fouladi, Executive Director, California Immigrant Policy Center

LWDA and ETP, in partnership with Sobrato Philanthropies recently held the SEEDing Opportunity in California symposium, which was facilitated by Jobs for the Future. The event brought together nearly 100 state leaders, community-based organizations, entrepreneurs, funders, researchers, and workforce partners to share lessons from SEED and explore opportunities to strengthen and scale these models.

ETP supports job creation and retention through training. The Panel funds worker training, training for unemployed workers to re-enter the workforce, and helps ensure California has the skilled workforce needed for businesses in the state to remain competitive. Since 2019, ETP has approved more than $738 million in funding to support over 659,000 workers.

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