California announces new $13.2 million investment in employment social enterprises creating pathways to economic opportunity

SACRAMENTO – Today, CalOSBA announced the 2026 grant recipients of the California Regional Initiative for Social Enterprise (CA RISE), a statewide program investing in businesses that create jobs, provide on-the-job training, and offer supportive services to people facing barriers to employment.

The 63 organizations selected for the 2026 CA RISE cohort represent communities across California and operate across a diverse range of industries, including manufacturing, healthcare, and environmental conservation.

The cohort includes:

• 20 organizations preparing to launch new employment social enterprises;
• 24 organizations strengthening existing employment social enterprises; and
• 19 organizations expanding established employment social enterprises and growing employment opportunities.

“CalOSBA is proud to support CA RISE, and the meaningful difference employment social enterprises are making for California. These small businesses are launching new ventures, creating jobs, and strengthening the communities they serve.” – California Office of the Small Business Advocate (CalOSBA) Director Elmy Bermejo

Creating Employment and Economic Mobility Across California

Employment social enterprises are revenue-generating businesses that provide paid employment, on-the-job training, and supportive services to people who have experienced employment barriers such as homelessness, incarceration, poverty, disability, substance-use challenges, or limited access to traditional employment.

CA RISE recipients were selected through a competitive statewide application process. Selected organizations collectively generated just under $1 billion in revenue in 2025, and employed over 6,000 California residents.

The selected cohort reflects California’s geographic and demographic diversity. Grantee organizations are located across 17 counties, with leadership teams that are rooted in the communities they serve. Roughly 80% of grantee organizations are women-owned or women-led, and nearly two-thirds have leadership teams that include people who are BIPOC or who have lived experience of employment barriers.

Supporting Businesses at Every Stage of Development

In addition to grant funding, recipients will participate in a statewide learning community, where they will receive technical assistance designed to strengthen their businesses, employment programs, leadership, and long-term financial sustainability.

Among this year’s recipients:

• Destination Crenshaw in Los Angeles is preparing to launch a Cultural Tourism and Visitor Experience employment social enterprise that leverages LA’s public art corridor and cultural programming. It intends to provide paid employment and workforce training for residents of the South LA community.
• Good Dirt Coalition in Fresno operates a pottery business and will use CA RISE funding to empower young women impacted by foster care to find joy through pottery, employment, and mentorship.
• Rise Up Industries in San Diego manufactures high-quality metal components while supporting justice-impacted participants to earn their CNC machine operator apprenticeship certificates. This CA RISE grant and technical assistance will allow it to expand into aerospace, defense, and OEM manufacturing opportunities, which will create additional quality jobs for participants with barriers to work.

“A person can build economic power when they have steady work, stronger finances, and a better quality of life. Employers like ESEs help create that momentum by opening pathways to quality jobs, and CA RISE is scaling the path to quality jobs for more people across California. Redefine Alliance is honored to continue our partnership with CalOSBA and Lendistry to support CA RISE,” said Maria Kim, President and CEO of Redefine Alliance.

Building on California’s Leadership

CA RISE is funded by the State of California through CalOSBA and implemented in partnership with Redefine Alliance (as program lead) and Lendistry (as fiscal agent).

The initiative builds on the first CA RISE cohort, launched in 2024 with 61 employment social enterprises operating across 16 California counties. The program represents one of the country’s largest public investments specifically dedicated to growing employment social enterprises and expanding employment opportunities for people who face systemic barriers to work.

Supported by a $25 million state investment that included $17 million in grants and $6 million in programming, technical assistance, and training, first-cohort grantees:

• Hired 3,887 new employees
• Secured over $38 million in public-sector contracts and grants
• Launched 28 new business lines, 15 new business locations, and 17 new products
• Added 238 new employer partners
• Generated $155 million in new revenue
• Businesses have collectively employed over 14,000 people facing barriers to employment

View the complete list of 2026 CA RISE recipients, locations, award amounts, and profiles at CA RISE 2026 Grantees.

About Redefine Alliance

Redefine Alliance invests in employment social enterprises, which are businesses that provide jobs, training, and support to people breaking through barriers to employment. Redefine Alliance partners with these businesses and the entrepreneurs who lead them, providing capital, capacity, and community to amplify their impact. For more information, visit redefinealliance.org.

About Lendistry

B.S.D. Capital, Inc. dba Lendistry is a minority-led financial technology company and Community Development Financial Institution that provides innovative lending products and access to grant programs for small businesses. For more information, visit lendistry.com.

About GO-Biz
The Governor’s Office of Business and Economic Development(GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

About CalOSBA
The Office of the Small Business Advocate (CalOSBA) helps support economic growth and innovation by working to ensure that California’s small businesses and entrepreneurs have the information, tools and resources they need to plan, launch, manage and grow their businesses successfully and be resilient. The CalOSBA serves to elevate their voices in state government and to advocate on their behalf to help ensure all aspiring and current small business owners and entrepreneurs are provided with the opportunity to access capital, access markets, and connect to the networks and resources they need to succeed. For more information visit the website.

Sara Curtis
Chief of Staff
Email Sara, HERE