NEW YORK (AP) — The fires in California have been devastating for many small business owners and others who saw their homes, businesses or livelihoods go up in smoke.
Raquel “Rockey” Smeir startedMy Friends Café in Sierra Madre, California, in 2021. While the fires spared her building, she dealt with power outages, the mandatory evacuation in the area of staff, customers and the entire community. When she got back to the building, she had to deal with lost revenue, spoiled food and a devastated community.
“Many people may not realize the significant financial strain that a small business like ours faces when dealing with unexpected events,” she said. “With payroll, rent, and taxes due, the loss of inventory and revenue from being closed for nearly a week can be financially devastating.”
While private fundraising has proliferated on sites like GoFundMe and elsewhere, there’s also a variety of aid at the national and local levels for small business owners and other affected by the fires. A freeze on federal loans and grants was announced on Tuesday, but it is unclear if that applies to disaster aid. Applications for disaster aid are still available on the Small Business Administration’s website.
The SBA did not return a request for comment.
Typically, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by a disaster, even if there’s no physical damage. Those loans can be used to pay fixed debts, payroll, accounts payable, and other expenses that would have been met if not for the disaster. Businesses can apply for loans of up to $2 million.
Disaster loans of up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters also are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
Locally, the Los Angeles Chamber of Commerce created a fund for small businesses affected by the fires. The $1 million fund will give grants ranging from $5,000 to $10,000 to directly support affected small businesses. It will also offer disaster recovery webinars and business advising support.
Another place to turn to are non-profit Community Development Financial Institutions, or CDFIs, which offer grants and loans to small businesses, often at better rates than traditional banks.
That’s the option that Smeir turned to. She applied for an SBA loan and two grant programs, but said she doesn’t expect to hear back about those until February or March. She did receive a grant from LiftFund, a CDFI headquartered in San Antonio, Texas, for an undisclosed amount, to help get the business back on its feet.
