The fires in California have been devastating for a lot of small enterprise homeowners and others who noticed their properties, companies or livelihoods go up in smoke.
Raquel “Rockey” Smeir startedMy Buddies Café in Sierra Madre, California, in 2021. Whereas the fires spared her constructing, she handled energy outages, the obligatory evacuation within the space of employees, prospects and all the neighborhood. When she acquired again to the constructing, she needed to take care of misplaced income, spoiled meals and a devastated neighborhood.
Associated: Climate Change Made LA 35% More Primed to Burn, Scientists Say
“Many individuals might not notice the numerous monetary pressure {that a} small enterprise like ours faces when coping with surprising occasions,” she mentioned. “With payroll, hire, and taxes due, the lack of stock and income from being closed for practically every week could be financially devastating.”
Whereas non-public fundraising has proliferated on websites like GoFundMe and elsewhere, there’s additionally quite a lot of assist on the nationwide and native ranges for small enterprise homeowners and different affected by the fires. A freeze on federal loans and grants was introduced on Tuesday, however it’s unclear if that applies to catastrophe assist. Functions for catastrophe assist are nonetheless out there on the Small Enterprise Administration’s web site.
The SBA didn’t return a request for remark.
Associated: LA Wildfires by the Numbers: Insured Losses, Total Losses, Ratings, Rates
Sometimes, the SBA gives Financial Damage Catastrophe Loans to assist meet working capital wants brought on by a catastrophe, even when there’s no bodily harm. These loans can be utilized to pay mounted money owed, payroll, accounts payable, and different bills that may have been met if not for the catastrophe. Companies can apply for loans of as much as $2 million.
Catastrophe loans of as much as $500,000 can be found to householders to restore or change broken or destroyed actual property. Owners and renters are also eligible for as much as $100,000 to restore or change broken or destroyed private property, together with private autos.
Regionally, the Los Angeles Chamber of Commerce created a fund for small companies affected by the fires. The $1 million fund will give grants starting from $5,000 to $10,000 to straight help affected small companies. It should additionally supply catastrophe restoration webinars and enterprise advising help.
One other place to show to are non-profit Neighborhood Improvement Monetary Establishments, or CDFIs, which supply grants and loans to small companies, typically at higher charges than conventional banks.
That’s the choice that Smeir turned to. She utilized for an SBA mortgage and two grant packages, however mentioned she doesn’t anticipate to listen to again about these till February or March. She did obtain a grant from LiftFund, a CDFI headquartered in San Antonio, Texas, for an undisclosed quantity, to assist get the enterprise again on its ft.
“It’s like reopening a brand new enterprise, however this time with invaluable expertise and classes realized,” she mentioned.
There may be additionally {industry} particular assist. Austin Manuel, who owns file retailer and occasion area Therapeutic Drive of the Universe in Pasadena, California, hasn’t utilized for any assist but as he offers with wind harm that blew ash and smoke into his constructing. He has needed to cancel occasions and postpone music lessons.
He plans to search for music industry-specific assist at organizations like MusiCares and Stay Nation and can also be contemplating an SBA mortgage.
“We anticipate lots of our upcoming occasions to be fundraisers for the neighborhood,” he mentioned. “We hope to point out up for them as finest we will for so long as we will.”
As small enterprise homeowners assess which assist to use for, nonetheless, its necessary to be on the alert for scams. Scammers typically goal the weak. If one thing seems to be too good to be true, it most likely is. House owners must be cautious when sharing data.
“Small companies in conditions like this are at all times focused by predatory lending, these trying to exploit companies with sort of money move or benefiting from the state of affairs,” mentioned Carolina Martinez, CEO of CAMEO Community, a statewide micro-business community. So enterprise homeowners ought to be sure they’re being “further vigilant and are very clear of their understanding of any phrases of something they may discover,” she mentioned.
Copyright 2025 Related Press. All rights reserved. This materials will not be revealed, broadcast, rewritten or redistributed.
Subjects
Commercial Lines
Business Insurance
Louisiana
Fascinated by Enterprise Insurance coverage?
Get computerized alerts for this subject.
