Business Interruption Fund expanded to Westside

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By Sam Catanzaro

Los Angeles County Metropolitan Transportation (Metro) has announced that they will provide compensation to Westside businesses to account for revenue lost during the construction of the Purple Line Extension.

“Transit rail construction can mean growth opportunities for small ‘mom and pop’ businesses located along transit corridors; however, transit construction also can be challenging for small businesses,” Metro said.

Last month, Metro announced the expansion of its Business Interruption Fund (BIF) for businesses that stand to be impacted by the third phase of the Purple Line Extension which will bring the light rail line to Westwood.

Already in place for Koreatown, Beverly Hills and Century City, business owners on the Westside can now apply for compensation from the $10,000,000 BIF fund. Each business can receive up to $50,000 or 60 percent of annual business revenue losses per business.

This financial assistance covers fixed operating expenses such as utilities, insurance, rent and payroll.

Factors included in the selection of recipients include the type of business and demonstration of lost revenue, but the most important factor is location. Businesses must be immediately adjacent to the transit rail corridor. 

“This refers to a business whose property line abuts or faces the rail corridor or a designated construction staging or construction storage area, including a business located in a mall or strip-mall that is similarly situated,” LA Metro said.

In addition, these funds are only available to operations with less than 25 employees and must be in continuous operation for at least two years along the corridor.

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Metro’s purple line Purple Line Extension, which will take the subway nine-miles further westward, is taking place in three phases. Construction of the second section between Beverly Hills and Century City started in 2017 and is expected to be complete in 2025. Phase three is estimated to cost $1.3 billion and will connect the subway from Century City to Westwood and the V.A. Hospital.


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