SBA Offers Financial Relief to Los Angeles County Businesses and Residents Impacted by Devastating Wildfires

Administrator Guzman to Travel to Southern California to Assess Needs

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WASHINGTON, Jan. 09, 2025 (GLOBE NEWSWIRE) — Today, SBA Administrator Isabel Casillas Guzman announced that low-interest federal disaster loans are now available to Southern California businesses, homeowners, renters and private nonprofit (PNP) organizations following President Joe Biden’s major disaster declaration. The declaration covers Los Angeles and the contiguous counties of Kern, Orange, San Bernardino, and Ventura due to wildfires and straight-line winds that began Jan. 7, 2025.

Administrator Guzman also will join FEMA Administrator Deanne Criswell in Southern California this week to assess on-the-ground needs and ensure the SBA is fully prepared to assist businesses, homeowners, and renters impacted by this disaster.

“As heroic firefighters and first responders continue to battle the devastating wildfires sweeping across Southern California, the federal government is surging resources to ensure that Angelenos are prepared to recover and rebuild from this catastrophe,” said SBA Administrator Guzman. “In response to President Biden’s major disaster declaration, the SBA is mobilizing to provide financial relief to impacted businesses and residents. Our continued prayers are with the brave individuals working to put out these fires as well as all those who have lost loved ones, their homes, and their businesses to this disaster. We stand ready to support our fellow Americans for as long as it takes.”

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Loans are available to businesses of all sizes and PNP organizations to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. The SBA also offers Economic Injury Disaster Loans (EIDLs) to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most PNP organizations to help meet working capital needs caused by the disaster, even if there is no physical damage. EIDLs may be used to pay fixed debts, payroll, accounts payable, and other expenses that would have been met if not for the disaster. Businesses can apply for loans of up to $2 million.

Disaster loans of up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters also are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

Interest rates can be as low as 4% for businesses, 3.625% for PNP organizations, and 2.563% for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and based on each applicant’s financial condition. Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement and loan repayment can be deferred 12 months from the date of the first disbursement.

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