Rebuilding After Disaster: A Lifeline for Small Businesses
The devastating California fires have left a trail of destruction, affecting not only homes but also the livelihoods of small business owners. Raquel “Rockey” Smeir, owner of My Friends Café in Sierra Madre, California, is one such entrepreneur who faced a multitude of challenges despite her building being spared. Power outages, mandatory evacuations, and lost revenue took a significant toll on her business.
The Financial Strain of Unexpected Events
Smeir emphasizes the substantial financial burden that small businesses like hers face when dealing with unexpected events. “With payroll, rent, and taxes due, the loss of inventory and revenue from being closed for nearly a week can be financially devastating.” This highlights the need for accessible aid and support for small business owners affected by disasters.
National and Local Aid Options
Fortunately, there are various forms of aid available at the national and local levels. The Small Business Administration (SBA) offers Economic Injury Disaster Loans to help meet working capital needs caused by a disaster, even if there’s no physical damage. These loans can be used to pay fixed debts, payroll, accounts payable, and other expenses. Businesses can apply for loans of up to $2 million, while homeowners and renters can apply for up to $500,000 to repair or replace damaged or destroyed real estate and personal property.
Local Initiatives and Non-Profit Support
The Los Angeles Chamber of Commerce has created a $1 million fund to provide grants ranging from $5,000 to $10,000 to directly support affected small businesses. Additionally, non-profit Community Development Financial Institutions (CDFIs) offer grants and loans to small businesses at competitive rates. Smeir turned to LiftFund, a CDFI, and received a grant to help get her business back on its feet.
Industry-Specific Aid and Vigilance
Austin Manuel, owner of Healing Force of the Universe in Pasadena, California, is exploring music industry-specific aid at organizations like MusiCares and Live Nation. As small business owners navigate the various aid options, it’s essential to be cautious of scams and predatory lending. Carolina Martinez, CEO of CAMEO Network, advises business owners to be “extra vigilant and very clear in their understanding of any terms” when seeking aid.
Rebuilding and Recovery
For Smeir, receiving aid has been a lifeline, enabling her to reopen her business and apply the lessons learned from the experience. As small business owners rebuild and recover, it’s crucial to prioritize their financial well-being and seek support from trusted sources. By doing so, they can emerge stronger and more resilient than ever.
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