- Small businesses are struggling to stay afloat in the wake of the deadly Los Angeles wildfires.
- Many structures were destroyed, but those left standing were damaged, with no foot traffic.
- For some industries with slim margins, some days without business are permanently closed.
as serious fire As you continue to crop through Los Angeles, balancing residential and commercial districts, even small business owners whose storefronts stand out are not out of the woods.
Although there have been over 12,300 installations destroyed by fireCommercial buildings that have not been totaled are still struggling with costly damage to repair and without any foot traffic driving business.
For some industries with slim margins — like bars and restaurants — going just a few days without business can lead to permanent closures.
AccuWeather estimated damages and economic losses from the wildfires at $250 billion to $275 billion, making it one of the costliest wildfire disasters in modern U.S. history.
“We have come to the heartbreaking decision that at this time, it is no longer feasible to operate Ruby Fruit due to the financial impact of the current natural disaster,” said The Ruby Fruit owners Emily Bielagas and Mara Herbkersman, a homosexual Wine bar around Silver Lake, posted on the bar’s Instagram page on Sunday
“Sadly, with all the grief and shock we’ve experienced over the past few days, there’s also come this undeniable reality: what’s driving us. small business No longer sustainable. The hospitality industry works on a day-to-day basis and right now, as they say — math isn’t just math,” they wrote.
The announcement was met with an outcry from fans and loyal patrons of the bar — one of the only bars in town that caters specifically to lesbians and “those who fall under the Sapphic umbrella,” according to the bar’s website.
Some customers, in comments announcing the bar’s closing, urged Bielagus and Herbkarsman to create a community fund to save the business. Ruby Fruit’s GoFundMe campaign, raising money to pay wages for bar workers — has raised nearly half of its $15,000 goal in three days.
Bielagus and Herbkersman did not immediately respond to Business Insider’s request for comment.
Financial assistance is available for small businesses trying to recover from wildfires. of the Small Business Administration Disaster Loan Program Offers loans of up to $2 million with low interest rates to eligible businesses suffering economic loss and physical damage Interest on these disaster loans does not start accruing for a year.
On Monday, California Governor Gavin Newsom announcement Extended tax filing deadlines and relief from interest and penalties for businesses affected by the fire. However, tax breaks and interest-accruing debt are nothing compared to a regular business, and costs accrued from closings add up quickly.
“Thankfully we are safe and able to operate until now,” Betsy Martinez, owner of Fan Girl Cafe in West Hollywood, told BI. “However, business has certainly been affected by the situation and we are navigating it as best we can.”
Martinez, who runs Fan Girl Cafe with his wife, said the pair lost about $5,000 in just two and a half days after the shutdown, in addition to slower business in the days that followed. As a new restaurant in its first year of operation, margins were already tight. They are now considering debt consolidation and taking out a new loan and have approached their existing lenders for bill extensions.
Some business owners are turning to local communities for financial support, but such funding is inconsistent — and largely targeted at businesses that have been destroyed. Restaurants including Fox Restaurant, The Little Red Hen Coffee Shop and The Reel Inn have it all. is burnt and started a GoFundMe campaign to raise money for rebuilding.
Martinez said he and his wife didn’t feel comfortable starting a GoFundMe, given how tight funding is for everyone else — and other businesses dealing with more severe losses.
“It’s a tough time for everyone right now,” he said. “Right now, we’re just looking at who we can help, even those who need our help.”
For now, many small business owners in the Los Angeles area are bracing for yet another costly disaster just a few years after the COVID-19 pandemic shut down more than 7,500 small businesses across the county, the California Business Journal reported.
“We closed last week and are closing this week. We hope to reopen next week,” said the owners of Star Love’s Honey’s. strange Bar in Little Armenia, BIK said in an email. “We’ve been taking it all day.”
