LA Street Vendors Receive Immediate Relief with Emergency Fund

Los Angeles, CA. During the beginning months of the pandemic, Inclusive Action for the City has helped to provide immediate cash relief for small businesses and street vendors who were not eligible for government financial support. One hundred and twenty street vendors impacted by COVID-19 received $400 cash cards in early June through the Street Vendor Emergency Fund (see above).

For several decades, tens of thousands of street vendors have served the residents and tourists of Los Angeles despite the fact it was a criminalized practice in the city. It wasn’t until 2008 when they came together to legalize street vending with the help of the organizations that specialized in community development like East LA Community Corporation (ELACC).

As street vendors started working with nonprofits, the Legalize Street Vending Campaign: Leadership for Urban Renewal Network (LURN) was created and focused on advocating for low-income communities, primarily concentrated with small businesses.

It wasn’t until a decade later that the long-term efforts of LURN and other committed communities paid off. Street vending became legal in November 2018, and low-income entrepreneurs were able to take control of their businesses and take care of their families without risking their livelihood.

LURN would eventually be renamed to Inclusive Action for the City and two years later, as COVID-19 became a predominant concern, there was a need for immediate relief for small, informal businesses.

“Inclusive Action is a lender, we provide small business loans to entrepreneurs,” said Inclusive Action’s executive director Rudy Espinoza, “many of our clients are street vendors, and they were coming in already anticipating that they were not going to be able to make their payments.”

Street vendors are not generally eligible for small business relief funds or other forms of government-sponsored financial support. Espinoza and his team were aware of this and heavily discussed in mid-March whether or not they should provide loans to those who were struggling with the quarantine. However, Inclusive Action decided against this action.

“We should not be doing loans to people right now that are struggling, but we need to get people cash,” Espinoza declared.

It was decided that the best way to help street vendors immediately was to distribute $400 cash cards (seen above) that could be withdrawn and used however the individual chooses. The decision allowed for the creation of the Street Vendor Emergency Fund with the collaboration of ELACC and Public Counsel.

1,032 street vendors were given immediate relief with the fund over the summer but Espinoza believes its “a drop in the bucket” to the much larger systemic issue of street vendors not being eligible for government benefits and having to rely on nonprofit organizations for relief during the pandemic.

“There should be more systems to protect vendors and take care of them during pandemics,” Espinoza said, “and the fact of the matter is that many of them have been struggling for a long time.”

There is hope for vendors to receive more immediate relief and support by the city as the Sidewalk Vending Pilot Program was recently passed by the LA County Board of Supervisors which will invest $1 million in assisting vendors with health-compliant equipment, education outreach, and other needs that will allow street vendors to safely sell in unincorporated areas of Los Angeles.

If you have the means to donate to Inclusive City for the City to continue working to help street vendors, click here.

From Inclusive Action for the City:

Inclusive Action addresses the root causes of poverty by merging good urban policy with sound economic development initiatives that reduce barriers, increase opportunity, strengthen local economies, and empower low-income residents and entrepreneurs across Los Angeles.

Our programs and initiatives seek to uplift those who face the most obstacles to social and economic opportunity. Inclusive Action empowers communities by prototyping innovative, scalable solutions that seek systems change, generating models that can be replicated and applied to all types of urban environments.