Eastside small businesses that have been financially impacted by the Lineage warehouse fire can now apply for up to $2 million in low-interest federal loans following a disaster declaration by California Gov. Gavin Newsom. But many immigrant-owned businesses may be excluded from that support.
Last week, the U.S. Small Business Administration (SBA) made its Economic Injury Disaster Loan program available to businesses and private nonprofits in LA, Kern, Orange, San Bernardino and Ventura counties that suffered financial losses due to the Lineage warehouse fire. The loans, however, may not be available to a significant portion of the city and county’s local business economy.
Recent changes to the SBA’s loan programs limit access to businesses owned by U.S. citizens and nationals, excluding many immigrant entrepreneurs — even businesses that are partly owned by permanent legal residents with a green card.
“These loans will help local businesses and nonprofits meet essential costs, retain workers, and move forward as the community recovers,” said Newsom in a statement.
The loans can provide up to $2 million to recover financially from the disaster. Interest rates start at 4% for businesses and 3.625% for private nonprofits, with terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months after the first loan disbursement.
“The SBA’s decision to restrict access to their small business loans is deeply disappointing and it will hurt communities here in LA and all across the country,” said Rudy Espinoza, chief executive officer of Inclusive Action for the City, a Boyle Heights-based economic justice nonprofit.
In the city of LA, immigrants made up 51.4% of business owners in 2019, generating $4.3 billion in business income, according to the American Immigration Council. Across the county, immigrants represented 49.9% of business owners and generated $8.7 billion in revenue.
Over the past year, many immigrant and Latino-owned businesses across LA County have suffered financially because of ongoing Immigration and Customs Enforcement raids. Now, businesses near the Lineage warehouse fire have reported extremely low-foot traffic, noxious odors and bad air quality that have affected their normal business.
“We’ve heard from so many small businesses who were impacted by the Lineage fire,” Espinoza said. “First of all, small businesses need cash that can cover their most immediate needs, like rent, supplies, payroll, and more. They need relief from utility bills. They need long-term support. And they need customers to return.”
Inclusive Action provides low-interest loans to immigrant entrepreneurs, Espinoza said, providing eligible businesses with loans ranging from $500 to $250,000 and interest rates ranging 5% to 8% fixed annually for up to 7 years.
The nonprofit partnered with the Boyle Heights Chamber of Commerce and the Hustle & Heart Collective to create the Boyle Heights Fire Relief Fund, which provided grants for brick-and-mortar shops and street vendors in the four ZIP codes around the Lineage fire. Applications have closed but donations are still being accepted to expand the fund.
So far, the fund has provided 135 small business owners with grants ranging from $1,000 to $3,000, Espinoza said.
In LA County financial support will soon be available to businesses impacted by recent disasters, including the Lineage fire and the East LA Oil Spill.
Supervisor Hilda Solis directed $750,000 from her First District Catalytic Development Funds to establish a Business Interruption Fund. Applications are expected to open on Sept. 10 and more information will be made available on the L.A. County Recovers website.
How to apply for an SBA Economic Injury Disaster Loan:
Businesses and nonprofits can apply online at sba.gov/disaster, call the SBA Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. The SBA will determine the loan amount and terms based on each applicant’s financial condition.
The deadline to apply is May 14, 2027.
SBA representatives will be available to answer questions and provide in-person application support at these locations:
East LA/Boyle Heights Business Source Center
1780 E. First St., Los Angeles, CA 90033
Open Monday through Friday from 8 a.m. to 5 p.m.; Saturday from 9 a.m. to 2 p.m.
East LA Entrepreneur Center (Centro Maravilla)
4716 E. Cesar Chavez Ave., Building B, Los Angeles, CA 90022
Open Monday through Friday from 8 a.m. to 4:30 p.m.
Resources for businesses that don’t qualify:
If your business has been impacted by the Lineage fire and is ineligible to receive an SBA grant, there may be financial support available.
LA County Business Interruption Fund
- Applications will be open from Sept. 10 to Sept. 24
- Will provide financial support to businesses that suffered financial losses, property damage, increased operating costs or additional costs related to cleanup and response.
- For more information or to book an appointment for help gathering supporting documentation, call the LA County Office of Small Business at (844) 432-4900.
Inclusive Action Small Business Loans
- To be eligible, businesses. must operate in LA County and make under $3 million in gross annual revenue
- Loans range from $500-$250,000 and interest rates range 5%-8% fixed annually for up to 7 years
- Business coaching and workshops are available
