California Launches $1 Million Initiative for Small Businesses Affected by Wildfires

News Summary

Steadfast LA has initiated a $1 million program to support small businesses in California impacted by recent wildfires. Eligible businesses can apply for grants up to $50,000 to aid in recovery. The initiative focuses on areas like Malibu and Pacific Palisades, where many businesses have faced significant challenges due to insurance issues and road closures. This program highlights the essential role of small businesses in the local economy and aims to revitalize the community post-disaster.

California – A $1 million initiative aimed at supporting small businesses affected by recent wildfires has been launched by Steadfast LA, a nonprofit organization founded by Rick Caruso. This initiative, backed by a significant donation from Banc of California’s Wildfire Relief & Recovery Fund, focuses on aiding retailers, restaurants, and independent businesses that have been impacted by the Eaton and Palisades Fires, particularly in the areas of Altadena, Malibu, and Pacific Palisades.

Eligible small businesses can apply for grants of up to $50,000, which are intended to help them reopen or sustain their operations following the devastating fires. The announcement of the initiative was made by Caruso at CNBC’s Small Business Playbook 2025 event, where he stood alongside Gordon and Shirley Wong, the owners of Knoll’s Pharmacy, which was destroyed in the wildfires.

According to the Los Angeles Economic Development Corporation (LAECD), independently owned small businesses make up more than 90% of all businesses in Los Angeles County, highlighting the critical role they play in the local economy. Caruso underlined the importance of supporting these businesses, noting they are essential to the community’s identity and sense of belonging.

The Small Business Initiative is designed to provide the necessary tools, resources, and support for local businesses to recover from the impact of the wildfires. Many small businesses in the targeted regions have encountered significant recovery hurdles, including dealing with insurance claims as a result of being uninsured or underinsured. In Malibu alone, up to 234 businesses were reported to have suffered damage, with 99 completely destroyed, leading to a loss of local employment and economic stability.

The situation has been exacerbated by the closure of the Pacific Coast Highway, a vital route for residents and visitors in Malibu and Pacific Palisades, which was shut down for five months following the fires. This disruption significantly hindered customer access to the local businesses, further complicating their recovery efforts. Additionally, environmental concerns, such as fire ash and toxic debris, have made it challenging for businesses that rely on maintaining a clean environment.

The application process for the grants will be managed by an independent third party, ensuring ongoing review and accountability. Recipients of the grants will be announced on a rolling basis, allowing for timely support to those in need. To bolster community engagement and encourage support for local businesses, Steadfast LA will also leverage social media platforms to highlight the resilience of these businesses and the adverse effects they have faced due to the wildfires.

This initiative is not the first contribution made by Banc of California to aid local businesses in distress; they previously supported the LA Area Chamber of Commerce’s Small Business Disaster Relief Fund. The collaborative efforts reflected in this grant initiative embody a broader mission to revitalize the local economy and instill hope within affected communities.

As the initiative takes off, it aims to address the pressing needs of local businesses, creating a pathway for recovery and renewal in the wake of the devastating wildfires that have ravaged the area.

Deeper Dive: News & Info About This Topic

• Santa Monica Daily Press
• Pasadena Now
• Secret Los Angeles
• American Banker
• Hollywood Reporter
• Wikipedia: Wildfires in California
• Google Search: Small Business Support Los Angeles
• Google Scholar: California Wildfire Recovery
• Encyclopedia Britannica: Wildfire
• Google News: California Wildfires 2025