The Small Business Administration has approved nearly $240 million in disaster assistance loans for Los Angeles County residents and businesses affected by recent fires, with officials urging affected parties to apply before key deadlines expire. Physical damage loan applications must be submitted by March 10, while economic injury applications will be accepted through October 8.
“We want to make sure the businesses can cashflow additional debt, but yes, you certainly can apply for additional assistance and any of the programs,” said Julie Clowes, Small Business Administration District director for Los Angeles.
The Small Business Administration has received almost 11,000 completed applications and approved approximately 800 loans so far. Business owners can apply for up to $2 million in physical damage loans and additional working capital through Economic Injury Disaster Loans, even if they haven’t experienced direct property damage.
A survey of Pasadena’s 14,000 licensed businesses reportedly revealed that 75% had to close temporarily due to the emergency, with closures ranging from one to 20 days.
Businesses reported closures due to multiple factors including cleanup of ash and debris, Southern California Gas outages, evacuation orders, do-not-drink water orders, and wind damage from fallen trees.
According to the survey, 97% have since reopened, but 83% reported experiencing revenue losses. 94% reported not yet received any financial assistance. Additionally, 60% reported disruptions to their supply chain and delivery operations.
Several grant opportunities are becoming available. The Los Angeles Region Small Business Relief Fund will open in February, offering $2,000-$25,000 in recovery funds.
TMC Community Capital is providing $5,000 grants through their Small Business Strong LA Wildfire Relief Fund, while Restaurants Care Grants will offer $350-$1,500 for impacted food and beverage workers.
To support applicants, the Small Business Administration has established a Business Recovery Center at 3035 E. Foothill Blvd. in Pasadena, operating Monday through Friday from 9:00 a.m. to 6:00 p.m. and Saturdays from 9:00 a.m. to 4:00 p.m.
The Center offers one-on-one assistance with applications and connects business owners to additional resources through Small Business Development Centers and Women’s Business Centers.
“If they weren’t damaged by the fire directly or the winds directly, they’re probably still assessing how this disaster is actually ultimately impacting them,” Clowes explained, noting the extended deadline for economic injury applications.
The City of Pasadena is maintaining a database of vacant properties where owners are offering space for free or reduced rent and has launched an online Business-to-Business Space Share Platform to connect displaced businesses with temporary spaces.
Additionally, the City is working to establish a popup shopping space at the Economic Opportunity Recovery Center in the Paseo Colorado property to offer free goods and services, and is preparing an application for Community Development Block Grant funding to create an emergency recovery microgrant program.
The loans feature 12-month payment deferrals from the date of first disbursement and include options for relocation assistance and refinancing existing mortgages. Businesses are encouraged to apply even if they’re uncertain about accepting funds, as applications can be withdrawn without penalty.