Accion Opportunity Fund Launches $100 Million "Rebuild Southern California Small Business Relief Fund" to Support Local Small Businesses Impacted by Wildfires

SAN JOSE, Calif., Jan. 22, 2025 /PRNewswire/ -- In response to the devastating wildfires that have ravaged Southern California, Accion Opportunity Fund (AOF) is proud to announce the launch of the Rebuild Southern California Small Business Relief Fund. The fund aims to raise $100 million in philanthropic donations and debt capital to provide urgent financial relief and recovery resources for small businesses impacted by the fires.

"Our hearts ache for the families and businesses affected by this tragedy," said Luz Urrutia, CEO of Accion Opportunity Fund. "These small business owners provide critical services to our communities, and many are now facing uncertain futures. We are committed to helping them in their recovery and rebuilding efforts."

Supporting Small Businesses with Critical Resources

AOF has long been a cornerstone of support for small businesses in and around Los Angeles, having invested over $174 million in more than 7,400 loans. Currently, AOF serves over 500 small business loan customers in Los Angeles County, many of whom are people of color (80%) and low-income (64%). These businesses provide essential services such as transportation, mobile food trucks, restaurants, childcare, beauty salons, and auto repair.

Fund Details and Areas of Focus

The Rebuild Southern California Small Business Relief Fund will focus on the following key areas:

• Loan payment relief for AOF borrowers, on a case by case and month by month basis, such as: skip a payment, payment deferment, or payment forgiveness, freeing up needed cash for other essential business and household uses. AOF will need philanthropy to absorb anticipated increased losses, ensuring we can help our borrowers.
• Small business grants for businesses that were destroyed, lost all their revenues, and do not qualify for a loan.
• New loans at preferential rates and terms for businesses that need additional cash to survive. The type of loan provided will depend on the circumstances of each business. To reach new customers with capital, AOF will seek to expand partnerships in Southern California to collaborate with others in the small business support ecosystem.
• Educational resources and technical assistance including business advising to help small business owners overcome the challenges they face as they navigate the road ahead.

Call for Support

AOF is seeding the fund with a minimum of $500,000 in existing philanthropic resources but needs the support of investors and donors to reach its $100 million goal in philanthropy and debt capital. Every dollar donated will help AOF extend $5 in loan capital to small business owners, providing a significant impact for businesses and the communities they serve.

"We cannot rebuild Southern California's small business ecosystem without the help of a larger community of investors, donors, and partners," said Luz Urrutia. "This is a collective effort, and with your help, we will ensure that these businesses have the resources they need to rebuild and thrive."

To make a donation or learn more about how you can contribute, please visit http://aofund.org/LA-small-biz-fire-relief-fund or contact [email protected].

SOURCE Accion Opportunity Fund