This issue brief by the University of California, Berkeley Center for Labor Research and Education examines the impact of the Patient Protection and Affordable Care Act on small businesses, their employees, and self-employed individuals in California. The law will make it more affordable for small businesses to offer coverage by reducing administrative costs for small group health plans and offering tax credits. All small businesses with fewer than 50 full-time equivalent employees will be exempt from employer responsibilities, and most small businesses offering coverage will be minimally affected by health plan standards. The law applies differently to different small businesses, depending on the firm size.