A business owner fears it is only a matter of time before he is forced to move out of his shop.
Planning permission is being sought to demolish Cowling Mill, in Cowing Brow, Chorley and build up to 65 houses in its place. Should the application be approved, a number of businesses on the site would have to relocate.
A previous application was submitted last year but it was later withdrawn.
Chorley Council is encouraging businesses to come forward if they need help.
Pete Dixon, a partner in PDM Fabrications Ltd, which is located at the mill, said: “If it goes through then we will have move.
“I think it’s only a matter of time before we have to move, because if the planning application keeps being submitted then it will eventually be accepted.”
Mr Dixon has looked for alternative locations for his business.
However, he cites costs and a lack of space as reasons why he hasn’t been able to move.
He added: “Renting isn’t affordable for us as the rates are quite high.
“We will have to look around again and hope we can find somewhere.”
Coun Terry Brown, ward member for Chorley East, said: “Nothing has been decided yet and we encourage both residents and business owners to come forward.
“We at the council can help businesses in the area find alternative premises so I urge them to contact us on 01257 515151.”