A new nonprofit founded by civic leader Rick Caruso announced Wednesday a $1 million initiative to support small businesses devastated by Los Angeles' January wildfires, addressing a critical gap in recovery funding as hundreds of establishments struggle to reopen.
Steadfast LA, launched with a donation from Banc of California's Wildfire Relief & Recovery Fund, will provide direct grants of up to $50,000 to retailers, restaurants and other independent businesses in Altadena, Malibu and Pacific Palisades affected by the Eaton and Palisades fires.
Caruso officially introduced the Small Business Initiative at CNBC's Small Business Playbook 2025 event alongside Gordon and Shirley Wong, owners of Knoll's Pharmacy in the Palisades, which was destroyed in the fire.
"These small businesses were about much more than commercial or economic activity. They were local hallmarks that gave neighborhoods their soul and fostered a sense of community," said Caruso, founder and chairman of Steadfast LA. "We cannot abandon them. This is about ensuring they have the tools, resources, and support they need to come back."
The initiative comes as fire-impacted businesses face an unprecedented recovery challenge. Unlike the COVID-19 crisis, when government relief programs helped prop up businesses, no comparable aid package has emerged for wildfire recovery.
The January fires destroyed or damaged hundreds of commercial properties across the three communities. In Malibu alone, 234 businesses were damaged and 99 were completely destroyed, representing nearly half of all jobs in the city, according to a Pepperdine University study.
"As the largest independent bank based in Los Angeles, we know that small businesses are the foundation of our local economy," said Jared Wolff, Chairman and CEO of Banc of California. "Their success and sustainability are integral not just for jobs and the economy, but provide the optimism and confidence that communities need to move forward."
Small businesses account for over 90% of all businesses in LA County, according to the Los Angeles County Economic Development Corporation. The recovery has been hampered by multiple factors beyond physical destruction. Pacific Coast Highway, the vital artery connecting coastal communities, was closed to the public for five months from January until late May, effectively cutting off Malibu and Pacific Palisades businesses from their customer base and halting tourist traffic entirely.
In Altadena, where the Eaton Fire destroyed over 6,100 homes and consumed roughly 14,000 acres, the local customer base has largely vanished. With so many residents displaced, surviving businesses report plummeting sales even after reopening.
Insurance delays have created additional bottlenecks. Six months after the fires, roughly 70% of insured survivors experienced significant delays, denials or underpayments on their claims, according to a fire-survivors advocacy group. Some businesses discovered they lacked specific coverage for business interruption insurance, leaving them with no compensation for months of closure.
Environmental contamination has added another layer of complexity. Fire ash and runoff polluted beaches and ocean waters with heavy metals and toxic debris, directly impacting businesses dependent on clean environments. A local scuba diving shop saw revenue drop 90% because people avoided smoke-polluted coastal waters.
The Small Business Initiative will be administered by an independent third party, with Steadfast LA providing additional support and soliciting further donations. The organization will also use social media to showcase businesses' resilience and encourage consumer support.
"These businesses aren't faceless storefronts. They are the fabric of the community," Caruso added. "They are made up of people: owners, employees, and loyal customers. They deserve an advocate to help address the challenges they're facing through no fault of their own."
Eligible small businesses can review criteria and submit information on the Steadfast LA website, with applications reviewed on a rolling basis. The initiative builds on Banc of California's previous donation to the LA Area Chamber of Commerce's Small Business Disaster Relief Fund.