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.
Erin Stone
is a reporter who covers climate and environmental issues in Southern California.
Published February 2, 2026 3:57 PM
Water companies that serve Altadena lost thousands of customers in the Eaton Fire.
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Mario Tama
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Getty Images
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Topline:
Water companies that serve much of Altadena are expected to hold public meetings this week to discuss how they’ll rebuild and stay in business after the Eaton Fire reduced many of their customers’ homes to ash. Two out of the three mutual water companies in the area are holding public meetings this week to discuss raising rates.
The background: Last year’s fires not only destroyed homes and businesses, but also critical infrastructure, such as water delivery systems. Rebuilding that infrastructure is particularly challenging in unincorporated areas such as Altadena, which is primarily served by three tiny, private water companies — Las Flores (more on their situation here), Rubio Cañon and Lincoln Avenue water companies. Unlike public utilities, these private, not-for-profit companies have less access to state and federal funding resources to rebuild, so customers are likely going to have to foot much of the bill. Customers of these companies are actually co-owners, called shareholders. Each is governed by its own set of bylaws.
Complications: All of Altadena’s water agencies have sued Southern California Edison, accusing it of responsibility for the Eaton Fire, but the result and timeline of such lawsuits remain uncertain. In turn, Edison has sued the water companies (among others), claiming they didn’t provide enough water for firefighters during the fire.
Rubio Cañon Land and Water Association: Rubio Cañon Land and Water Association served about 9,600 people in Altadena but, after the Eaton Fire, about 30% of that customer base is now made up of empty lots. While insurance is covering much of the most critical infrastructure repairs, the company faces a $1.95 million revenue shortfall.
Its proposal: To close the budget gap, the company is proposing an 11% rate hike, plus a “fire recovery charge” between $10 and $30 a month.
What about merging with other water companies? While Lincoln and Las Flores water companies have submitted paperwork to the state to study consolidation, Rubio Cañon has rejected being part of the effort. “Such consolidation could trigger a 7-12 year state process and significant shareholder costs, as Altadena is not classified as a disadvantaged community to qualify for the full menu of state resources,” the company wrote in its update ahead of this week’s meeting, calling such consolidation discussions “premature” and “unproductive.”
Upcoming board meeting: The board will hear from the public about the proposal at a meeting at 5 p.m. Tuesday at the Altadena Community Center. Attendees will have to prove they're a customer. More details here.
Lincoln Avenue Water Company: Lincoln Avenue served more than 16,000 people in Altadena before the Eaton Fire. Now, about 58% of its customers and revenue are gone. Although the company says it has sufficient reserves and is not facing bankruptcy in the near term, it has decided to raise water bills by $15 a month for existing customers. To improve its long term resilience, the company is also considering merging with Las Flores water company, but that will take time.
Upcoming board meetings: The board will discuss the rate hike at a special meeting at 5:30 p.m. Thursday at the Loma Alta Park Community Room. The meeting is open to shareholders only.
Destiny Torres
is LAist's general assignment and digital equity reporter.
Published February 2, 2026 3:24 PM
The 2026 Winter Olympics in Milan begin Friday, and eight athletes have roots in Southern California.
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Luca Bruno
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AP
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Topline:
The 2026 Winter Olympics in Milan begin Friday and eight athletes have roots in Southern California, including Los Angeles, Riverside and San Bernardino counties.
Read on … for a full rundown on the SoCal’s Olympic athletes.
The 2026 Winter Olympics in Milan begin Friday and eight athletes have roots in Southern California, including Los Angeles, Riverside and San Bernardino counties.
Team USA’s 232-member roster includes 21 athletes from California. The Winter Games begin Feb. 6 and end on Feb. 22.
What about the 2026 Paralympics? The Milano Cortina 2026 Paralympics will start on March 6 and run through March 15. Not all qualifying athletes have been announced yet.
You can watch the games starting Friday on NBC and streaming on Peacock.
Keep up with LAist.
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Jordan Rynning
holds local government accountable, covering city halls, law enforcement and other powerful institutions.
Published February 2, 2026 3:21 PM
The LAPD deployed munitions and mounted units.
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Spencer Platt
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Getty Images
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Topline:
A federal judge banned LAPD from using 40mm projectiles at protests last month, but researcher Scott Reynhout of the nonprofit Physicians for Human Rights says the department still utilizes other crowd control weapons that can be just as dangerous — if not more so.
Why it matters: Local, state and federal law enforcement agencies have used thousands of crowd control weapons against protesters in L.A. since June 2025, when federal immigration raids began escalating tensions in the region. Many people who were never accused of breaking the law have still been struck by what are known as “less-lethal” crowd-control weapons, including rubber bullets, tear gas and flash bang grenades.
The most dangerous crowd control weapons: The LAPD uses a 37mm launcher that is inherently risky, Reynhout said. Even though the 37mm rubber bullets are smaller than the 40mm projectiles the LAPD was banned from using at protests, they are more likely to hit sensitive areas like the face and neck because they fire multiple projectiles in each shell.
Read on... for more on the crowd control weapons used by local law enforcement agencies.
Local, state and federal law enforcement agencies have reported using thousands of crowd control munitions against protesters in L.A. since June 2025, when federal immigration sweeps began escalating tensions in the region.
Many people who were never accused of breaking the law nonetheless have been struck by what are known as “less-lethal” crowd control weapons, including rubber bullets, tear gas and flash bang grenades.
While a federal judge banned the LAPD from using 40mm projectiles at protests last month, the department still uses other crowd control weapons. According to Scott Reynhout, who researches these weapons for Physicians for Human Rights, a nonpartisan nonprofit, some of these weapons can be just as dangerous as the banned projectiles — if not more so.
LAist spoke with Reynhout to better understand what they do and how people protesting lawfully can protect themselves.
Reynhout said it's very important that people pay attention if law enforcement declares an unlawful assembly, which they are required to do before using crowd control weapons in most cases.
“ If the police have declared an illegal assembly, it would behoove you to take steps to isolate yourself from that particular situation,” Reynhout said. “If that is not possible for you, for whatever reason — say, you live in the particular area where you are — then you could consider [protecting] yourself from chemical irritants or potentially from impact projectiles.”
Some of the most dangerous crowd control weapons used in L.A.
Physicians for Human Rights’ international study, Lethal in Disguise, found weapons that fire multiple projectiles at once were “far and away the most dangerous” type of crowd control weapons.
"82% of all the recorded injuries in the medical literature that came from impact projectiles were from ... multiple projectile impact projectiles,” Reynhout told LAist. “And 96% of all the ocular injuries from impact projectiles were from these multiple projectile impact projectiles."
He said the LAPD is the only police department in the U.S. he is aware of that uses this type of weapon. The department uses a 37mm less-lethal launcher (LLM) that shoots five rubber bullets with each shell.
According to reports required by Assembly Bill 48, the department used more than 600 of these shells — that’s over 3,000 projectiles — against anti-ICE protesters last June. They have continued to report using the 37mm launcher, most recently to disperse crowds after the Dodgers World Series win on Nov. 2, according to AB 48 reports.
The 37mm launcher is inherently risky, Reynhout said. Even though the 37mm rubber bullets are smaller than the 40mm projectiles the LAPD was banned from using at protests, they are more likely to hit sensitive areas like the face and neck.
The use of multiple projectiles causes the 37mm projectiles to scatter in a cone shape once they leave the launcher, making them much more difficult to control than a single projectile. He said LAPD’s policy of “skip firing,” which means officers are instructed to aim 5 to 10 feet in front of the person they are shooting at, also adds randomness.
A diagram showing LAPD's policy of "skip firing" the 37mm less-lethal launcher at targets.
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LAPD Use of Force Directive
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“ The real risk behind these multi-shot impact projectiles,” he said, “is that you just really don't have any control over where these bullets go in the end.”
Reynhout said people standing beside or behind the intended target could very easily get hit, which he believes was likely the case when Australian reporter Lauren Tomasi was struck in the leg by a rubber bullet in June.
[Note: LAist correspondent Adolfo Guzman-Lopez was struck in the throat by a projectile at a 2020 protest. Long Beach police later said they believed that injury was caused by a ricochet of a foam round.]
LAist reached out to LAPD for comment on their use of the 37mm launcher, but the department did not respond.
Another type of crowd control weapon found to be especially dangerous is the use of beanbag rounds, usually fired from a 12-gauge shotgun. These rounds fire small lead pellets sealed in a fabric bag.
Reynhout said the use of these rounds can be “horrific” and leave people with life-threatening injuries.
According to LAPD policy, beanbag rounds are not allowed to be used for crowd control, but other agencies have used them. The California Highway Patrol reported using beanbag rounds against anti-ICE protesters last June.
If you find yourself in a situation where projectiles are being deployed, Reynhout advises focusing on protecting your face and eyes. That’s where the most serious injuries occur.
Reynhout said ballistic eyewear that meets military standards (MIL-PRF-32432) could offer protection against some of the most severe injuries.
He said the 40mm or 37mm projectiles can be similar to getting hit by a golf ball by someone swinging just 6 feet away, and while things like bike helmets, paintball masks, hockey masks or even soft body armor might help to some degree, they aren’t designed to protect someone from that kind of impact.
What you may most likely be affected by: Chemical agents
Chemical agents like tear gas and pepper spray are crowd control weapons that saturate an area and affect everyone in it, Reynhout told LAist, and that includes people who may not even be part of a demonstration.
He said you should be especially aware of these weapons being used near you if you have asthma or any airway or respiratory system issues because they can provoke severe reactions in some cases.
In their report, Reynhout and other researchers found that children and older people are also at risk of severe reactions, which could be life-threatening.
There is gear on the market to mitigate those risks, including sealed safety goggles and respirators (N-, P- or R-100). If you find yourself exposed to a chemical irritant like tear gas or pepper spray, Reynhout said there is nothing shown to be more effective than flushing the area for 10 to 15 minutes with saline solution.
The saline solution should ideally be sterile and at body temperature, he told LAist, but plain water also works if that is what you have available. The important thing is that you continue to flush the area and dilute the chemicals.
For skin or clothing, Reynhout said dilution with water is still the key, but you can use some Dawn dish soap to help wash away pepper spray.
Other dangers
California law enforcement officers have also used flash bang grenades in response to protests since June. The L.A. County Sheriff’s Department and California Highway Patrol together used more than 300 aerial flash bang grenades on June 8, according to AB 48 reports. Those are crowd control munitions shot out of 40mm launchers that explode mid-air and create 170 dB of sound and 5 million candelas of light.
LAist asked the LAPD about their policy on using flash bang grenades for crowd control, but the department did not respond. The LAPD has not listed any uses of flash bang grenades in their AB 48 reports dating back to April 2024.
Aside from these, there are a number of other crowd control weapons and devices that are used by law enforcement agencies in the L.A. area: grenades that explode to release small rubber balls, pepper balls, batons or — unique to the LAPD — officers on horseback using wooden practice swords called “bokken.”
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Reynhout said deciding how much protection you might choose to take with you to a protest is very personal. Some bulkier items might restrict your movement, cause you to overheat or impede your ability to maintain situational awareness, so it is important to consider what risks you may face and use your best judgement.
Sometimes, he said, that best judgment might be to walk away from the situation.
Replay: LA Mayor Karen Bass deliver annual address
Libby Rainey
is a general assignment reporter. She covers the news that shapes Los Angeles and how people change the city in return.
Published February 2, 2026 3:07 PM
L.A. Mayor Karen Bass delivers her 2026 State of the City address.
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Screenshot of YouTube stream
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Topline:
L.A. Mayor Karen Bass laid out her vision for Los Angeles at her first of two "State of the City" addresses Monday afternoon at Exposition Park. The speech, which comes as her race for re-election ramps up, was framed as a celebration of the coming World Cup.
Why now: Bass made the remarks at the L.A. Memorial Coliseum, which will host a FIFA Fan Festival June 11-15 to coincide with the start of the tournament.
Read on... for what what she said in the annual "State of the City" address.
L.A. Mayor Karen Bass laid out her vision for Los Angeles at her first of two "State of the City" addresses Monday afternoon at Exposition Park.
"Let's show the nation and the world we are the greatest city on earth," Bass told the crowd outside the L.A. Memorial Coliseum.
But the mayor moved quickly from announcing that there would be more than 100 free watch parties for the tournament into a retrospective of L.A.'s terrible 2025 — from the January fires to the immigration agents that descended on the city in June and haven't left.
"Raids continue every day in Los Angeles and with them have come the devastating losses of life," she said, naming Renee Good, Alex Pretti and Keith Porter Jr., who was shot by an off-duty ICE agent in Los Angeles on New Year's Eve. " This senseless death, lawlessness and violence must end and so must the presence of ICE in Los Angeles."
Bass described local leaders as the last line of defense against the actions of the federal government.
L.A.’s fire recovery
She also discussed the ongoing recovery of Pacific Palisades, where she has faced substantial criticism for the city's response to the fire and first year of rebuilding, which some residents say has been too slow.
" We've brought in new leadership to overhaul fire preparedness and emergency response," Bass said, referencing her decision to remove former fire chief Kristin Crowley. "And yes, we're fighting the next battle: holding financial institutions and the insurance industry from abandoning Los Angeles because recovery should never feel harder than the disaster itself."
Bass said 400 homes lost to the fire are currently under construction, and that she would travel to Sacramento next week with Councilmember Traci Park and Pacific Palisades residents to push for more state funding for recovery. The Palisades Fire destroyed nearly 7,000 homes and killed 12 people.
The mayor's response to the Palisades Fire is a key issue in her race for re-election. Two of Bass's challengers, former LAUSD Superintendent Austin Beutner and influencer Spencer Pratt, had their homes damaged or destroyed in the disaster.
Housing and homelessness
Bass then laid out her efforts around housing and homelessness, pointing to an affordability crisis that makes staying in stable housing, or buying a first home, out of reach for many Angelenos.
"The greatest test of L.A. is whether people can actually afford to live here year across Los Angeles," the mayor said in her address. "Too many neighbors are packing multiple families into one apartment are working two and three jobs just to stay housed."
Bass then turned to homelessness, doubling down on her commitment to her signature "Inside Safe" program, which aims to move people off the streets and into interim housing. She said that the city had cleared nearly 120 encampments.
Bass focused on the fight to end homelessness for veterans in Los Angeles — a focus she said was interrupted by the 2025 fires. She said the city had issued 600 housing vouchers for veterans since last year.
She ended the speech where she started — talking about the city's role as host of the World Cup and 2028 Olympic Games.
" We will continue to focus on the fundamentals, the things that shape how a city feels to the people who live here and the millions who will visit," she said.
