Los Angeles County officials recently launched a grant program aimed at helping small businesses recover from two significant local incidents: the Lineage Fire in Boyle Heights and the East Los Angeles oil spill. Eligible businesses within county-designated impact areas can apply for recovery grants of up to $3,000, with applications open through October 1.
The program was established after Los Angeles County Board Chair and Supervisor Hilda Solis directed First District funds to address the financial damage these emergencies caused. Solis noted that these events disrupted commerce and placed an unfair burden on business owners, and that the grants are intended to provide resources for businesses to weather these disruptions, maintain employment, and remain vital parts of their communities.
The Lineage Fire began on June 17 at a sprawling 491,000-square-foot cold-storage warehouse on South Los Palos Street in Boyle Heights. The blaze burned for more than a week, eventually destroying much of the facility. Inside, more than 85 million pounds of food were stored, which began to rot after the fire, leading to persistent foul odors in surrounding neighborhoods and attracting rodents and insects. The subsequent cleanup operation stretched over two months, with Lineage Logistics ultimately removing over 89 million pounds of food waste and debris. The company estimated the remediation and cleanup costs at roughly $100 million. The cause of the fire remains under investigation; Lineage has claimed in a lawsuit that a contractor working on a rooftop solar array was responsible, an allegation disputed by the solar-array owner.
Separately, the East Los Angeles oil spill occurred on May 22 near East Cesar E. Chavez and Eastern avenues. This incident happened when drilling work for a fiber-optic installation damaged a 16-inch underground crude oil pipeline. An estimated 25,000 gallons of oil were released into the ground and storm drains, eventually reaching the Los Angeles River. Cleanup efforts for this spill addressed oil on street surfaces, nearly 3.4 miles of storm drains, and within the river itself.
To qualify for the county's recovery grant program, businesses must meet several criteria. They need to be located within a county-designated impact area related to either incident and must have been operating at that location for at least 30 days prior to the applicable event. Additionally, eligible businesses must have 100 or fewer employees, annual gross receipts of $6 million or less, and be able to demonstrate or attest to a qualifying business disruption or economic impact from the incident. Applicants are required to provide verifying information and documentation.
Kelly LoBianco, Director of the county Department of Economic Opportunity (DEO), emphasized that the impact of an emergency extends beyond the immediate crisis, affecting businesses through lost customers, revenue, and operational time. She stated that these grants are specifically designed to deliver direct assistance to impacted small businesses, helping them continue to serve the East Los Angeles community.
Applications for the Small Business Recovery Grants are being accepted online through AidKit, the county’s grant administrator. The county has indicated that if the number of eligible applicants surpasses the available funding, a prioritization process and weighted lottery will be used to determine recipients. Those not initially selected may be placed on a waitlist should additional funding become available. The deadline to apply is October 1.
