Essential Support for Small Businesses Overcoming Fire Devastation: Resources, Tips, and Financial Aid

The recent fires in California have hit small businesses hard. Many owners have lost their homes, stores, and livelihoods.

Raquel “Rockey” Smeir opened My Friends Café in Sierra Madre in 2021. While her building survived, she faced power outages and mandatory evacuations that affected her staff and customers. When she returned, she found spoiled food and lost revenue, along with a shaken community.

Many don’t realize how much financial strain a small business faces after disasters,” she shared. “With rent, payroll, and bills due, not to mention losing inventory because we were closed for almost a week, it’s tough.”

For those affected, help is available. The Small Business Administration (SBA) provides loans and grants, though a freeze on federal loans was recently announced. Applications for disaster aid can still be found on the SBA’s website.

The SBA typically offers Economic Injury Disaster Loans to help businesses cover essential costs, even if they didn’t suffer physical damage. These loans can reach up to $2 million and can be used for things like rent and payroll. Homeowners can also access disaster loans of up to $500,000 for property repairs and an additional $100,000 for personal property damages.

Locally, the Los Angeles Chamber of Commerce has set up a $1 million fund. This fund will provide grants of $5,000 to $10,000 to support affected businesses. They’re also offering disaster recovery webinars and business advice.

Many business owners are turning to Community Development Financial Institutions (CDFIs) for help. These non-profits provide grants and loans, often at better rates than traditional banks. Smeir applied for an SBA loan and other grants but has not received feedback yet. However, she did get a grant from LiftFund, a CDFI based in Texas, which is helping her get back on track.

She reflected, “It feels like reopening a new business, but I have valuable experience now.”

Other business owners are also seeking assistance. Austin Manuel runs a record store and event space in Pasadena and has dealt with wind damage from the fires. Facing cancellations and class postponements, he plans to explore music industry-specific help and might consider an SBA loan. “We want to host fundraisers for the community,” he said. “We’re here to support them as much as we can.”

As they navigate recovery, business owners must be cautious of scams. Vulnerable individuals often attract scammers looking to exploit their situation. If an offer seems too good to be true, it probably is. Carolina Martinez, CEO of CAMEO Network, suggests that business owners stay vigilant. “They should carefully understand any terms before proceeding,” she advised.

By staying informed and seeking the right support, small business owners can weather this storm and rebuild their livelihoods.