Out of the Fire and Into Hope: Getting Capital to Businesses in Crisis
By Luis Moran, Technical Assistant
I started the year like I ended in 2023: talking to small businesses about opportunities and challenges. My first appointment was with an entrepreneur named Oscar, who told a story of a catastrophe that fell upon his business last month.
For Oscar, the I-10 freeway fire in Los Angeles was much more than a story in the news.
“I will have to start from zero,” Oscar told me. Oscar is a street vendor who sells fresh watermelon, mangoes, and pineapple near Olympic and Bundy. The fire devoured his cart, which he stored near the I-10. There was nothing left.
The 37-year-old vendor, who has been selling his goods for five years, says his heart sank when he assessed the damage. Sadness and hopelessness overwhelmed him.
“This is how I support my family. It is all I have,” he said as he furrowed his brow and clasped his hands, recalling that fateful day. The father of two daughters and one son, ages 17, 13, and 11, spoke with his wife to determine how they would move forward.
Thankfully, we were able to support him. Oscar received uplifting news when he discovered help was available to those who suffered business losses.
Within days of the fire, the Los Angeles County Department of Economic Opportunity (DEO) conducted outreach to impacted businesses. At Inclusive Action, we readied our “rapid response” system, as we did during the pandemic when we operationalized the Street Vendor Emergency Fund. We had learned about street vendors and micro businesses being greatly affected by the fire, and we knew we had a role to play in their recovery. With funds from Wells Fargo and collaboration with DEO to identify businesses, we distributed $50,000 in microgrants, ranging from $3,000 to $10,000, to 10 microbusinesses in one week!
I visited each and every business to hear their stories and understand their recovery needs. I was inspired to see him out in the community, listening to entrepreneurs and identifying ways to help them.
In Oscar’s case, the $8,000 grant he received was the hope he prayed for.
“I felt a sense of peace come over me. Now I can go onward and not worry about providing for my family,” he told me.
Oscar was not alone. Jason Shin and Mimi Basseri were other entrepreneurs who echoed Oscar’s sentiments.
Jason, who works at Uriert, Inc., which manufactures women’s clothes, had to shut down because all the roads that lead to it were closed.
“Oh my goodness! What were we going to do?” said Jason as he threw his hands up in the air. “People canceled orders, and we couldn’t move any merchandise either in or out of the company,” he told me.
Uriert, Inc. received a $10,000 grant, and he says this will help keep the business open and pay some salaries.
“Anything helps. We are relieved and grateful,” he added.
Fashion designer Mimi Basseri, who owns Mimi A La Mode and sells hair accessories, sleep masks, and oils, also suffered from a loss of revenue.
“It was like a ghost town. There was no foot traffic in the streets,” she said.
Mimi’s green eyes lit up as she picked up her check for $3,000. The money will help her pay bills, so her business, which she started in 2004 and is located in the fashion district, remains open.
While the fire ravaged the livelihoods of Oscar, Jason, and Mimi, thanks to the partnership with Wells Fargo and LA County DEO, we were able to not only cut checks but facilitate much-needed hope.
As we start the new year, I’m taking more phone calls from struggling entrepreneurs and workers. Fortunately, many have not been harmed by the I-10 freeway fire, but they are certainly feeling the fire of poverty, the high cost of housing, and more. We’ll have to work together this year to identify resources to support so many working people who are still recovering from the last three years of crisis.