Liz Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, at her home in Vista on Jan. 31, 2025.
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Ariana Drehsler
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CalMatters
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Topline:
California’s small businesses — employers to more than half the state’s workforce — are staring down what some owners, experts and advocates say could be immense negative consequences from President Donald Trump’s slew of executive orders.
The background: Trump’s embattled federal funding freeze imposed on Jan. 27, affected hundreds of billions of dollars for thousands of federal programs, including many aimed at small businesses. After states including California filed suit, a federal judge issued a temporary restraining order putting the freeze on hold. The administration has said funding for small business would not be paused, but owners and advocates are not sure if that will prove true, and say uncertainty about the freeze may already be doing damage.
What's at stake: California is the biggest recipient of Small Business Administration loans, with $1.15 billion in loans approved for this year. Not all loans from the agency are federally funded, but they are guaranteed by the government. The loans funded by the agency, which could be most at risk from the freeze, include disaster loans and microloans.
Read on... for more on what's at stake in California.
California’s small businesses — employers to more than half the state’s workforce — are staring down what some owners, experts and advocates say could be immense negative consequences from President Donald Trump’s slew of executive orders.
Trump’s embattled federal funding freeze and anti-diversity push have seeded uncertainty about the economy, jobs and spending on infrastructure and innovation.
The freeze, imposed on Jan. 27, affected hundreds of billions of dollars for thousands of federal programs, including many aimed at small businesses. After states including California filed suit, a federal judge issued a temporary restraining order putting the freeze on hold. Since then there has been more legal wrangling, including a court order stating that Trump failed to comply with the initial ruling.
The administration has said funding for small business would not be paused, but owners and advocates are not sure if that will prove true, and say uncertainty about the freeze may already be doing damage.
Liz Perez, who owns a small general contracting firm in San Diego County, said news of the funding freeze gave some people in her Native American community “heart attacks.” She said some projects that were under construction had to be temporarily halted while those in charge tried to figure out what was going on.
“I’ve never seen tribal leaders — the most put-together leaders — so frazzled,” Perez said.
Perez and other small business owners, allies and experts worry that a freeze could mean fewer opportunities for entrepreneurs to start and grow businesses, which could lead to fewer jobs and less spending and investment for communities, industries and larger businesses.
Small businesses with fewer than 20 employees accounted for 29% of jobs in California, and businesses with 20 to 100 employees accounted for 30% of jobs in the state as of the end of 2022, according to an analysis of Bureau of Labor Statistics data by the Public Policy Institute of California.
California, the nation’s most populous state, is the biggest recipient of Small Business Administration loans, with $1.15 billion in loans approved for this year. Not all loans from the agency are federally funded, but they are guaranteed by the government. The loans funded by the agency, which could be most at risk from the freeze, include disaster loans and microloans.
Other federal funds that help small businesses and were on the list of programs to be frozen include the $25 million for the State Small Business Credit Initiative, which the Finance Department said is in the state’s 2025-2026 fiscal year budget. Community development financial institutions, which provide banking services to small businesses, are also facing a “real and immediate threat” to their funding that includes possible cancellation of contracts, the CDFI Coalition said in an email to its members this week that was seen by CalMatters.
Simon Brown, spokesperson for national advocacy group Small Business Majority, said small business owners, who “struggle to access capital from all institutions at all levels,” count on the Small Business Administration as a key source of help. Although he is unclear about whether funding from the agency will be affected, he is concerned. “If SBA funding was choked off in some way, it would be a major blow to the entire ecosystem,” Brown said.
Representatives from the Small Business Administration did not return multiple requests for comment, and neither did the White House.
Alex Bloom, economic development manager for Central Sierra Economic Development District as well as Mother Lode Job Training — which handles training funded by the federal Workforce Innovation and Opportunity Act — said the effects of a federal funding freeze could be far-reaching.
“Overall there’s a level of uncertainty,” that could lead to a drop in investor confidence, he said. And “a funding freeze or delay could halt infrastructure projects, which would affect job creation and development that are critical to our region,” Bloom added.
Others say a freeze or pullback on funding will have an impact on equity — that it could hurt those who need the most help.
How federal aid and policies have boosted small business
Perez said she served in the U.S. Navy for nine years, then “transitioned right into a recession.” At one point, she was pregnant and had nowhere to live. She began working in construction and eventually started a business.
“My business helped get me out of poverty,” said Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, and subsidiary Veterans Energy Services Company.
Liz Perez, owner of GC Green, a general contracting and consulting firm that focuses on clean energy, walks around an electric vehicle charging station that was recently completed at a Sonic location in Vista on Jan. 31, 2025.
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Ariana Drehsler
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CalMatters
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On the list of programs the Trump administration is examining include funds for small business development centers, development loans and technical assistance for small businesses.
The budget office also said it wanted to root out “Marxist equity, transgenderism, and green new deal social engineering policies.”
California Attorney General Rob Bonta, who with other state attorneys general won a temporary restraining order against the freeze, said last week during a press conference that, if enacted, it would affect 34% of the state’s budget, which he called “a massive, irreplaceable chunk.”
As a woman, veteran and Native American, Perez said she has been helped by some DEI initiatives. But she said “starting my company didn’t mean I cut in line, or got in front of everybody. It means I got my foot in the door.”
Perez also was able to secure a federal loan to help Native American-owned businesses during the pandemic, during President Joe Biden’s administration, which she said helped her expand her business.
“You roll back these initiatives, what is that going to do to our economy, our supply chains, our workforce?” she asked.
You roll back these initiatives, what is that going to do to our economy, our supply chains, our workforce?
— Liz Perez, small business owner, San Diego County
The budget office followed up its original memo with another one that said “funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused.” But there is evidence that at least one of the things on that list has not been spared: Some Head Start programs have had trouble accessing funding and at least one has been forced to shut down in Washington, according to media reports and the states’ lawsuit.
At least one expert CalMatters spoke with said he thinks small business is “probably one of the last places the spigot will be turned off.” Robert Dekle, an economics professor at the University of Southern California, said “it would actually be suicidal for the Republican party to continue with” cutting off aid to small businesses because he said small business owners make up “a large part of Trump’s base.” (A poll after Trump won the election showed changes in optimism among small business owners differed along party lines.)
‘We’re going backwards’
But Catalina Amuedo-Dorante, an economics professor at UC Merced, said this administration has made its priorities clear. “We’re going backwards (in terms of) rights for different minority groups, groups that need more assistance in medical care, food, education,” she said.
The professor added that “harming human capital” is a recipe for disaster. She called the possible rollback of funding to small business, medical research and other programs a threat to this generation and next.
Line cook Leticia Andrade, left, puts together a lunch order at Creative Ideas Catering, a small business, in San Francisco on June 11, 2024.
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Juliana Yamada
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CalMatters
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Another one of Trump’s executive orders — titled “Ending Illegal Discrimination And Restoring Merit-Based Opportunity” — includes a directive to the Office of Federal Contract Compliance Programs within the Department of Labor to stop “promoting diversity” and “allowing or encouraging Federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”
The president’s anti-diversity push rides a wave of similar sentiment that has swept the country in recent years, including through lawsuits against affirmative action in government. Last year, a judge ruled that a small business lending program meant to help Black, Latino and other underrepresented entrepreneurs should be open to white people.
In late January, the Small Business Administration reportedly decreased its goals for federal contract awards to small and disadvantaged businesses to 5%, apparently because of the Trump directive on DEI. Under Biden, the goal was 15%.
What all this could mean, regardless of what happens with the funding freeze, is that some small businesses that might otherwise have been considered for federal government contracts may no longer get those chances.
Perez, the small business owner, said DEI initiatives can help when it comes to landing general contracting work, but not always: “Just because these policies are in place, it doesn’t mean you’re going to get the job. It’s so difficult. It’s grinding all the time.”
Carolina Martinez, chief executive of CAMEO Network, a small business advocacy group, said procurement opportunities were already limited, and the Trump administration’s new policies will make things worse. “It seems clear they’re opening the door to discrimination and racism,” she said.
Randell Leach is CEO of Beneficial State Bank in Oakland, a community development financial institution, which serves low-income customers and small businesses that may not be able to get loans elsewhere. Leach said he is concerned about the intersecting effects of “the curtailment of funding and anti-DEI measures that could come together and impact women entrepreneurs and communities of color.”
Not only does that directly affect historically underrepresented small businesses but also, potentially, “a whole host of vendors and tech companies that support them,” he said.
The bottom line: “It’s important to be aware that discrimination in any form is not only bad for communities, but for the economy,” Martinez said.
First artifacts installed in LA museum's expansion
Makenna Sievertson
has been covering space shuttle Endeavour's journey at the California Science Center since December 2023.
Published November 18, 2025 4:08 PM
The first of many artifacts have been installed in the Kent Kresa Space Gallery, including a space shuttle main engine (right) and a solid rocket booster segment.
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Makenna Sievertson
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LAist
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Topline:
The California Science Center unveiled Tuesday the first of many launch vehicles, engines and other artifacts set to be installed in the museum’s 200,000-square-foot expansion coming to Exposition Park.
Why it matters: Jeff Rudolph, president and CEO of the California Science Center, said the $450 million expansion is California’s biggest “endeavor” yet that will inspire the next generation of scientists, engineers and explorers.
Why now: The first artifacts in the expanded museum were placed in the Kenta Kresa Space Gallery, including a three-story-tall Electron launch vehicle from Rocket Lab in Long Beach.
The backstory: It’ll be the only place in the world where visitors can see an authentic space shuttle in its “Go for Stack” position, which is what museum officials called the process of moving each of the space shuttle components into place.
What's next: Officials expect to announce next year an opening date for the expansion.
Read on ... for a peak inside the expansion coming to Exposition Park.
The California Science Center unveiled Tuesday the first of many launch vehicles, engines and other artifacts set to be installed in the museum’s 200,000-square-foot expansion coming to Exposition Park.
Once complete, the new Samuel Oschin Air and Space Center will include multi-level galleries built around a towering centerpiece — the space shuttle Endeavour — displayed in its 20-story vertical launch position.
It’ll be the only place in the world where visitors can see an authentic space shuttle in its “Go for Stack” position, which is what museum officials called the process of moving each of the space shuttle components into place.
Museum admission will be free.
Jeff Rudolph, president and CEO of the California Science Center, said the $450 million expansion is California’s biggest “endeavor” yet to inspire the next generation of scientists, engineers and explorers.
“The enthusiasm that people have when they come in and see this stuff and get excited about it will hopefully lead to many more people, young and old, but particularly young people wanting to pursue more education in science,” Rudolph told LAist.
Museum officials expect to announce next year an opening date, according to Rudolph.
A look inside the center
The Samuel Oschin Air and Space Center will feature three main galleries: the Samuel Oschin Shuttle Gallery, the Korean Air Aviation Gallery and the Kent Kresa Space Gallery.
Guests will be guided through hundreds of exhibits and authentic artifacts focused on the exploration of the universe — including rocket ships that carried humans into space and telescopes used to view stars and galaxies beyond our reach.
A real Electron launch vehicle from Rocket Lab in Long Beach spans several stories tall in the Kent Kresa Space Gallery.
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Makenna Sievertson
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LAist
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The first artifacts in the expanded museum were placed in the Kenta Kresa Space Gallery, including a three-story-tall Electron launch vehicle from Rocket Lab in Long Beach.
Adam Spice, chief financial officer of Rocket Lab, told LAist the Electron helped lower the cost of getting to space by sending satellites in smaller, cheaper rockets. The new center is an opportunity to get up close and personal with an Electron for the first time outside of a factory.
Spice said he hopes it’ll show visitors their dreams can become a reality.
“They can be part of something much bigger than probably they ever thought they could,” he said.
The first artifacts installed in the Samuel Oschin Air and Space Center include a solid rocket booster segment. Kenneth Phillips, aerospace curator, shows the scale of the piece, which has flown into space several times.
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Makenna Sievertson
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LAist
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The solid rocket booster segment will become a walk-through interactive experience in the Kent Kresa Space Gallery.
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Makenna Sievertson
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LAist
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A segment of a solid rocket booster that flew into space several times is laid on its side on the second floor of the gallery.
Kenneth Phillips, the California Science Center’s aerospace curator, told LAist it’ll be turned into an interactive exhibit with audio, video and educational graphics.
“It's 12 feet in diameter, so people can actually walk through it and learn about the function of it from the inside out literally,” Phillips said.
Visitors will be able to get up close and personal with a space shuttle main engine.
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Makenna Sievertson
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LAist
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A detailed model of a space shuttle main engine is set up next to the solid rocket booster. Three of those main engines helped boost space shuttles into orbit by providing about 20% of their power, Phillips said.
What's next
Construction of the Samuel Oschin Air and Space Center started more than three years ago and is on track to be completed in the coming weeks, according to museum officials.
With construction of the Samuel Oschin Air and Space Center weeks away from completion, crews have started to put in landscaping around the outside of the expansion.
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Makenna Sievertson
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LAist
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The exterior of the Samuel Oschin Air and Space Center as of Tuesday.
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Makenna Sievertson
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LAist
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The remaining exhibits and artifacts will then be installed over "many months," Rudolph said. Officials expect to announce next year an opening date for the expansion.
The California Science Center also is looking to raise about $70 million more for the $450 million project before it opens. You can learn more about its “EndeavourLA” fundraising campaign here.
Matt Dangelantonio
directs production of LAist's daily newscasts, shaping the radio stories that connect you to SoCal.
Published November 18, 2025 3:58 PM
The Westwood Village Theater will be operated and programmed by American Cinematheque when it opens
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George Rose
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Getty Images
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Topline:
The group of directors restoring the Village Theater in Westwood are tapping film nonprofit American Cinematheque to program and run the venue when it opens.
Why it matters: American Cinematheque also programs the Aero Theatre in Santa Monica, the Egyptian Theatre in Hollywood and the Los Feliz Theater, making it a visible and active film arts nonprofit in the industry.
The backstory: The nearly century-old movie palace went up for sale in 2024 before Village Directors Circle bought it in February. The group is comprised of more than 30 notable filmmakers. They're led by director Jason Reitman (Thank You For Smoking, Juno) and their ranks include Guillermo del Toro, Alfonso Cuarón, Lulu Wang, Chloé Zhao, Christopher Nolan and Ryan Coogler.
What's next: VDC says it's eyeing a 2027 opening for the Village Theater, and is currently in the quiet phase of a capital campaign to raise $25 million to restore and remodel the Village Theater into a more than 1,000-seat venue.
For January fire survivors looking for fresh start
Gillian Morán Pérez
is an associate producer for LAist’s early All Things Considered show.
Published November 18, 2025 3:46 PM
Residents embrace in front of a fire-ravaged property after the Palisades Fire swept through in the Pacific Palisades neighborhood of Los Angeles on Jan. 8.
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Etienne Laurent
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AP
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Topline:
The city of Long Beach has launched a new jobs program to help people affected by January’s fires.
Who is it for? The initiative will provide paid career opportunities and financial assistance to people looking for a fresh start in Long Beach.
To start, 10 people will get up to 300 hours of paid work experience with local employers. Another five people also will get training scholarships of up to $7,500 in high-demand fields like health care and information technology.
Who's paying for it? The initiative is funded by a $130,000 federal act called the Workforce Innovation and Opportunity Act.
How to apply: Anyone interested in applying can contact Nakawa Shepherd, Career Center manager, Economic Development and Opportunity, at Nakawa.Shepherd@longbeach.gov or visit the LBWIN Adult Career Services Center.
How to participate: Long Beach’s Economic Development and Opportunity office also is looking for local employers to provide on-the-job training for applicants.
Jacob Margolis
covers science, with a focus on environmental stories and disasters.
Published November 18, 2025 2:51 PM
This undated photo provided by the U.S. Attorney's Office shows Jonathan Rinderknecht, who has been accused of setting a fire that led to the Palisades Fire.
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U.S. Attorney's Office
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Topline:
The man accused of igniting a fire that led to the deadly and destructive Palisades Fire in January will remain in custody without bond, U.S. Judge Rozella Oliver decided Tuesday in Los Angeles. Jonathan Rinderknecht has been in custody since his arrest in Florida on Oct. 7.
Where things stand: Rinderknecht was indicted by a federal grand jury in October and is charged with one count of arson, one count of timber set afire and one count of destruction of property by means of fire. Rinderknecht pleaded not guilty in mid-October and faces anywhere from five to 45 years in federal prison if convicted. His trial is set to begin April 21, 2026. His lawyers recently asked the court to allow him out of custody as he awaits trial.
Argument against release: In a filing on Monday, prosecutors said Rinderknecht is a flight risk because of his familial ties to France, as well as a danger to the community. The filing states that Rinderknecht threatened to burn down his sister’s home and that he purchased a gun and threatened to kill his brother-in-law. Prosecutors also raised the fact that a judge determined in October that the suspect’s mental health had declined.
The allegations: Authorities allege Rinderknecht set fire to brush near the Skull Rock Trailhead in the Santa Monica Mountains at around midnight Jan. 1, starting the Lachman Fire. Though the fire was held to just 8 acres and was believed to have been extinguished, authorities say it flared up once again amid strong, dry winds a week later. That fire grew into the Palisades Fire, which killed 12 people and destroyed more than 6,800 structures.
