The first of the wildfires broke out in the Pacific Palisades neighborhood of Los Angeles last Tuesday morning, tearing through dry brush in the Santa Monica Mountains. As of Sunday, the Palisades fire was still spreading and four major blazes had burned nearly 40,000 acres in the L.A. area, taking at least 24 lives, destroying or damaging more than 12,000 structures and causing economic damages now estimated at up to $150 billion. The Palisades, with its canyon and ocean views, was known for its high-end houses, ranging from sleek modern designs to classic California Spanish-style estates. Another devastated neighborhood, Altadena, 35 miles to the East, had some more modest homes that families had owned for generations.
But the fire hasn’t just cost lives and leveled housing—it’s also taken out thousands of shops and restaurants, and damaged the business prospects of those still standing. In the Palisades 90272 zip code alone, there were more than 1,000 businesses before the fire. Across Southern California, business owners, and particularly those dependent on local customers, now face the tough decision about whether to rebuild and reopen, gambling that demand will recover quickly enough to make it worth the risk.
Some restaurants destroyed by the fires are already looking for community support to rebuild. Fox’s, a diner in Altadena with roots stretching back to 1955, and the Reel Inn, a casual seafood spot in Malibu, are among those that have started GoFundMe campaigns to help their employees, the Los Angeles Times reported. Fox’s has already raised $34,555 and the Reel Inn $135,337. But many longtime patrons are likely now struggling themselves.
The Small Business Administration’s (SBA) disaster loan program could offer a longer and more substantial lifeline to help the restaurants reopen. It provides direct loans of up to $2 million at rates as low as 4% to businesses that have suffered physical damage or economic losses from a declared disaster. Eligible businesses include not only those scorched by the fire, but also some indirectly impacted, like suppliers or businesses that rely on devastated neighborhoods for customers. Among the benefits of SBA direct disaster loans: Interest doesn’t start to accrue until a year after the business gets the money.
(Surprisingly, nonprofits and even individual homeowners........