LA Small Businesses Struggle to Rebuild Post-Wildfires Amid Limited Federal Aid

In the aftermath of the devastating January wildfires in Altadena and the Pacific Palisades, small business owners are confronting significant challenges in their rebuilding efforts. While homeowners have received assistance through government-funded debris removal programs, commercial property owners find themselves largely excluded due to longstanding federal disaster recovery policies.​

The wildfires destroyed or damaged over 180 commercial and multifamily buildings in Altadena and 72 commercial properties in the Pacific Palisades. Business owners like Matt Schodorf, proprietor of the former Café de Leche on Lake Avenue, face tens of thousands of dollars in cleanup costs not covered by insurance. Schodorf expressed frustration, stating, "The fact that we’re kind of an afterthought sucks. We just want to be part of the fabric of rebuilding.

Under current federal guidelines, commercial properties—including small businesses, mixed-use buildings, and rental units—are typically ineligible for government-funded debris removal unless granted specific exceptions. This policy has left many local entrepreneurs, particularly those operating family-run or owner-operated businesses, struggling to clear debris and commence reconstruction.​

Local officials, including Los Angeles County Supervisors Kathryn Barger and Lindsey Horvath, are advocating for policy changes to include commercial properties in cleanup efforts. They are urging commercial property owners to submit Right of Entry forms by the April 15 deadline, emphasizing that applications could strengthen the case for policy exceptions. Governor Gavin Newsom has suggested that commercial sites might be reviewed on a case-by-case basis, though no definitive commitments have been made.​

The situation underscores the pressing need for equitable disaster recovery policies that support both residential and commercial property owners. As small businesses play a crucial role in the local economy and community fabric, ensuring their recovery is vital for the broader revitalization of the affected areas.​

Sources:

• "LA Small Businesses Face Uphill Battle Rebuilding," The Real Deal, April 14, 2025.

• "‘Customers Are Not Coming In’: LA Restaurants Are at a Breaking Point Due to the 2025 Wildfires," Eater LA, January 17, 2025.