Lifeline for Small Businesses Amid the Ashes

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By Ramiro A. Cavazos,  President & CEO of the United States Hispanic Chamber of Commerce

As wildfires ravage Los Angeles, they leave more than charred landscapes in their wake. They destroy the dreams and livelihoods of small business owners—the family-run markets, repair shops, and restaurants that form the backbone of our communities.

Hispanic entrepreneurs are particularly vulnerable. In Los Angeles, where one-third of minority-owned small businesses are Hispanic-owned, these enterprises create hundreds of thousands of jobs and generate billions annually. Yet, when disaster strikes, they often find themselves overlooked, unable to access traditional loans or insurance payouts in time to stay afloat.

This isn’t just an economic problem. It’s a crisis for the whole community.

At the U.S. Hispanic Chamber of Commerce, we represent more than 5 million Latino-owned businesses nationwide that generate more than $8 billion to the American economy. We have witnessed firsthand how disasters deepen inequality, where recovery efforts frequently overlook the very entrepreneurs who sustain neighborhoods, create jobs, and drive local economies. This oversight comes at a cost: nearly 50% of small businesses will never reopen after a disaster, and almost another 30% will close their doors within the next two years.

One of the most effective tools in disaster recovery is Community Development Financial Institutions (CDFIs), which include nonprofit business lenders. These mission-driven lenders specialize in reaching the underserved, providing flexible, affordable financing when traditional banks cannot, ensuring that small businesses can rebuild and thrive.

CDFIs are uniquely positioned to bridge the gap between government aid and private philanthropy. Yet, they often operate on shoestring budgets, with limited resources to scale their impact. As a Chamber CEO, I am proud to serve as a board member of LiftFund, aTexas based CDFI that provides support across the country, I am here to say this must change.

As fires continue to burn in Los Angeles, we face a choice: Will we invest in equitable recovery efforts or allow the ashes to settle on communities left behind?

The time to act is now. We urge policymakers and corporate leaders to:

• Increase funding for nonprofit CDFIs dedicated to disaster recovery.

• Create public-private partnerships to streamline aid for small businesses.

• Support innovative solutions, like creating a National Small Business Recovery Fund, to ensure resources reach those who need them most.

For philanthropists, the return on investment is clear. Every dollar invested in nonprofit CDFIs generates lasting economic and social benefits. Businesses reopen. Jobs are preserved. Communities recover. But this isn’t just about recovery—it’s about resilience. By investing in these organizations, we can ensure that small businesses are better prepared for the next disaster, whether it’s a wildfire, hurricane, or economic downturn.

The significance of supporting Hispanic-owned businesses cannot be overstated. In 2022, the U.S. Latino GDP reached an astounding $3.6 trillion, making it the fifth-largest economy in the world, surpassing countries like India, the United Kingdom, and France. This economic powerhouse grew by 13% from the previous year, showcasing our community’s immense potential and resilience. By supporting Hispanic entrepreneurs, we’re not just rebuilding individual businesses but fueling an economic engine that drives national prosperity.

Small businesses are the lifeblood of our economy. When they thrive, we all thrive. Let’s ensure they have the support they need to rise from the ashes stronger than before.