The recent wildfires in Los Angeles have severely impacted small businesses. Many are struggling to survive. Even those businesses that remain standing are facing challenges. Foot traffic has disappeared, making it difficult to attract customers.
Over 12,300 structures have been destroyed. While some commercial buildings are still intact, they are often damaged and costly to repair. For businesses in industries with tight profit margins, like bars and restaurants, a few days without income can lead to permanent closures.
The wildfires are causing an estimated economic loss of between $250 billion and $275 billion, marking this as one of the most expensive wildfire disasters in U.S. history.
Emily Bielagus and Mara Herbkersman, owners of The Ruby Fruit wine bar in Silver Lake, announced their painful decision to close their business due to the financial strain from the fires. They expressed their heartbreak over losing a unique space that served the lesbian community.
In response to their closure announcement, many supporters encouraged them to set up a fundraiser. The Ruby Fruit has started a GoFundMe campaign aiming to raise $15,000 to support their staff, and has already gathered about half that amount.
Financial help is available for businesses affected by the fires. The Small Business Administration offers disaster loans of up to $2 million for those facing economic losses or physical damage. Notably, interest on these loans doesn’t accrue for the first year.
California Governor Gavin Newsom also announced tax relief for affected businesses. While these measures provide some support, they don’t replace the loss of regular business income, leading many to struggle even further.
Betsy Martinez, who owns Fan Girl Cafe in West Hollywood, shared that her business has already lost about $5,000 in just two and a half days due to closures. As a new establishment, she’s concerned about the tight margins and is exploring options like debt consolidation.
Some business owners are reaching out to their communities for help, but funds can be unpredictable. Many established businesses that completely burned down, such as Fox’s Restaurant and The Reel Inn, have initiated GoFundMe campaigns for rebuilding costs.
While Martinez and her wife are hesitant to start their own fundraising campaign, as they feel others are in more dire situations, they are focusing on how they can assist their community during this tough time.
The aftermath of the fires is leaving many small business owners anxious and uncertain. Just a few years after the struggles brought on by the COVID-19 pandemic, which saw over 7,500 small businesses close in the county, they now face yet another wave of challenges.
As they navigate these tough times, many are taking it day by day, hoping to find a way to reopen and recover.
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