LA Small Businesses Face Uphill Battle Rebuilding

Three months after wildfires ripped through Altadena and the Pacific Palisades, small business owners still struggle to clear away debris and start rebuilding.

While federal and county resources have helped residents clean up destroyed homes, commercial landlords have largely been left behind — caught in a decades-old policy that excludes them from government-funded debris removal, Bisnow reported.

Matt Schodorf, owner of the once-beloved Café de Leche on Lake Avenue, was among the first in line at the Los Angeles County planning department to seek a building permit. But like many local business owners, he faces tens of thousands in cleanup costs not covered by his insurance policy.

“The fact that we’re kind of an afterthought sucks,” Schodorf told Bisnow. “We just want to be part of the fabric of rebuilding.”

The January wildfire destroyed or damaged more than 180 commercial and multifamily buildings in Altadena, an unincorporated neighborhood north of Pasadena.

In Los Angeles, the Palisades fire caused similar damage to 72 commercial properties.

Yet under federal disaster recovery guidelines, commercial properties — including locally owned businesses, mixed-use buildings and even rental units — aren’t eligible for debris removal programs unless granted exceptions.

Business owners and local leaders argue that this approach is short-sighted.

Unlike corporate franchises, many Altadena businesses are family-run or owner-operated, with deep community roots. Teresa Fuller, a real estate broker with Compass who also lost a commercial building in the fire, described the unequal treatment as “a bitter pill.”

Some officials are now pushing back.

Los Angeles County Supervisors Kathryn Barger and Lindsey Horvath are lobbying the Federal Emergency Management Agency and the U.S. Army Corps of Engineers for broader inclusion of commercial properties in the cleanup effort.

Gov. Gavin Newsom has suggested commercial sites might be reviewed on a case-by-case basis, but no firm commitments have been made.

With an April 15 deadline approaching for property owners to submit Right of Entry forms, local leaders are urging commercial owners to apply — even if federal messaging remains unclear. An application, they argue, could help build the case for policy exceptions.

“You can’t be considered if you don’t submit your [Right of Entry],” Constance Farrell, a spokesperson for Horvath, told Bisnow.

For business owners like Schodorf, the hope is that with enough advocacy, small businesses will get a fair shot at recovery, and help restore Altadena.

— Dana Bartholomew