The Governor’s Office of Business and Economic Development (GO-Biz) was created in 2012 as a one-stop shop for the state’s job creation efforts. It is the lead agency for developing economic strategy and marketing of California’s businesses, consolidating various pre-existing state programs. The office focuses on attraction, retention and expansion of business services by helping with site selection, permit streamlining, regulatory hurdles, small-business assistance, international trade development and assistance with state governments. It also makes policy recommendations to the governor and Legislature

Gov. Jerry Brown Signs "GO Biz" Into Law (NBC News)

Analysis of AB 2641 (State Senate Rules Committee)

California has long had a reputation, some would say undeserved, of being a state that is not overly hospitable to business, big and small. Critics point to regulatory oversight, environmental laws, tax policy, organized labor and a Left Coast mentality as contributors to what some consider a lack of attention to business interests.

One complaint has been the lack of a central office to coordinate the activities already being conducted by agencies such as: the Infrastructure and Economic Development Bank (I-Bank), California Small Business Development Centers, the California Film Commission, the Office of Tourism and the Small Business Guarantee Loan Program in the Business, Transportation & Housing Agency. The Little Hoover Commission later recommended that all of these be included in a new governor’s Office of Business and Economic Development.

The Office of Small Business Advocate already existed in the Office of Planning and Research in the governor’s office when Jerry Brown created the Office of Economic Development by executive order in 2010.

But in mid-2012, as part of the governor’s sweeping government reorganization plan, Assembly Bill 29 created the Office of Business and Economic Development and immediately christened it GO-Biz. The bill also created the California Business Investment Services Program and the Office of Small Business Advocate within GO-Biz.

Kish Rajan, a Walnut Creek city councilman and experienced mobil technology industry executive, was appointed GO-Biz director in September.

Governor Appoints New GO-Biz Team, Signs Legislation to Reopen International Trade Offices (League of California Cities)

The Office of Business and Economic Development (GO-Biz) makes policy recommendations to the governor and Legislature, helps market the advantages of business in California, assists the Department of Finance and other departments with economic goals, maximizes federal resources, and works with various entities to encourage business development and investment in the state.

Business Development—The office’s Business Investment Services Unit assists employers, corporate real estate executives and site location consultants who are considering a move to California. The no-fee services include: financial assistance and loan programs; tax credit benefits through economic development zones; employee training and recruitment; and transportation and infrastructure information.

Infrastructure and Economic Development Bank—Created in 1994, the I-Bank is a California financing authority empowered to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage state and federal funds. The I-Bank is governed by a five-member board of directors and administered by an executive director appointed by the governor and confirmed by the state senate. It has a portfolio of loans and bonds totaling over $29 billion, financing public infrastructure and economic development throughout California.

Innovation and Entrepreneurship—The state runs an initiative called iHub (Innovation Hub), which encourages economic development around research clusters. The hubs leverage assets like universities, federal laboratories and technology incubators for the use of startup companies, venture capitalists, business groups and economic development organizations. Hubs include: the clean technology and green energy iGate iHub; the biotechnology BioSF iHub and the Biomedical, Information & Clean Tech OCTANe iHub.

International Trade and Investment The office assists small- to medium-size businesses develop markets abroad for their products and services. It provides support and information on international trade issues and investment opportunities, international agreements and foreign relations. The office promotes the services of the California State Trade and Export Promotion (California STEP) project for small business owners looking for funds to enter or increase exporting.            

Permits—The Permit Assistance Unit helps companies navigate the regulatory compliance system. Staff members arrange pre-application meetings between businesses and the appropriate regulatory agencies to help streamline the permit process. CalGold is an online resource for researching information from all levels of government.  

Small Business Assistance—The Office of Small Business Advocate provides assistance on issues ranging from regulations to procurement. Its staff also serves on state interagency working groups and task forces, representing small business interests in legislative and policy determinations.  

About Us (GO-Biz website)

A Review of Government Reorganization Plan No. 2 (Little Hoover Commission) (pdf)

Assembly Bill 29

Nearly half of the Office of Business and Economic Development’s 2012-13 budget of $3.8 million is earmarked for legislative strategizing on policies, programs and actions regarding economic development in the private sector.

About 40% is spent in support of programs that serve employers, corporate executives, business owners and site location consultants who are considering expanding their operations in California. These programs are often conducted in local and federal partnerships and include marketing and trade organizations.

Around 10% of the budget is spent on the Office of the Small Business Advocate, which is responsible for disseminating information about programs and services provided by the state that benefit small businesses. The office responds to complaints from small businesses about actions of state agencies, and state laws and regulations that adversely affect those businesses. It also maintains and distributes a list of small business ombudsmen serving throughout state government.

A little more than three-fourths the office’s budget is spent on salaries and benefits for its 28 employees; the rest goes for operating expenses and equipment.

3-Year Budget (pdf)

GO-Biz Looks to Overseas

Nearly 10 years after California shut down its 12 taxpayer-funded trade offices―their effectiveness, cost and credibility in question―Governor Jerry Brown announced in 2012 that GO-Biz would open a trade office in China by the end of the year.

Trade offices bring together California and foreign business representatives at trade shows, or by facilitating personal contact through introductions. The first two offices had opened in London and Tokyo in 1987 and 10 more were added over the years, culminating with a Shanghai office in 2000.

The state was already hurtling toward a $40 billion budget shortfall in May 2003, and the trade budget of $6 million was under scrutiny, when the Orange County Register reported that the trade offices lacked oversight and were submitting false claims of success.

“They are a drag on the entire agency,” Democratic state Senator Dean Florez said at the time. The Register contacted 58 of the 191 businesses the trade offices claimed to have significantly helped overseas and found that none of them agreed that the offices had played an important role.

Democratic state Senate leader John Burton said he assumed governors liked the offices for reasons other than promoting business. “They consider them mini-embassies and want them as political plums for their friends,” he said. 

The Trade and Commerce Agency, which was created in 1992 and oversaw the trade offices, was the state's primary economic development entity for promoting business, tourism and foreign investment. By the end of the decade, the agency was already being criticized by the Legislature for lack of effectiveness and a report by the Legislative Analyst’s Office echoed those concerns.

The Legislature shut the agency down in 2004. Afterward, the Business, Transportation and Housing Agency became primarily responsible for state international trade and investment activities, which were minimal.

Assembly Bill 2012, signed by Governor Jerry Brown in September 2012, transferred those responsibilities to the Office of Business and Economic Development. In announcing that California was headed overseas again, the office’s deputy director, Brook Taylor, said, “We’re very mindful of some of the issues the previous foreign trade offices had.”

State’s GO-Biz Goes to China? (by Nathan Donato-Weinstein, San Jose Business Journal)

Jerry Brown: California to Reopen Foreign Trade Offices in China (by David Siders, Sacramento Bee)

1999-2000 Budget Analysis (Legislative Analyst’s Office)

California’s Overseas Trade Office Closures: Lessons for Washington State (School of Economic Sciences, Washington State University Extension) (pdf)

Trade Secrets (by Kimberly Kindy, Orange County Register)