SBA Offers Low-Interest Disaster Loans for Southern California Wildfire Recovery

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans to help Southern California businesses, homeowners, renters, and nonprofit organizations recover from the devastating wildfires and straight-line winds that began on January 7, 2025. The loans follow President Joe Biden’s major disaster declaration, which covers Los Angeles County and the contiguous counties of Kern, Orange, San Bernardino, and Ventura.

Administrator Guzman to Assess Disaster Recovery Needs

SBA Administrator Isabel Casillas Guzman will travel to Southern California alongside FEMA Administrator Deanne Criswell to evaluate the disaster’s impact and ensure the SBA’s resources are effectively deployed.

Loan Details for Businesses and Individuals

The SBA is offering loans to assist with physical damages, economic injury, and personal property losses:

• Business Loans: Up to $2 million for businesses and private nonprofit organizations to repair or replace damaged property, machinery, equipment, inventory, or other assets. Economic Injury Disaster Loans (EIDLs) are also available to help with working capital needs caused by the disaster.
• Homeowner Loans: Up to $500,000 to repair or replace damaged real estate.
• Homeowner and Renter Loans: Up to $100,000 to repair or replace personal property, including vehicles.

Interest rates are as low as:

• 4% for businesses.
• 3.625% for private nonprofit organizations.
• 2.563% for homeowners and renters.

Repayment terms can extend up to 30 years, with interest accrual and repayment deferred for 12 months from the date of the first loan disbursement. Loan terms are determined based on the applicant’s financial condition.

How to Apply

The SBA encourages early applications to expedite the process. Applicants can apply online at sba.gov/disaster or contact the SBA Customer Service Center at (800) 659-2955 for more information. Individuals who are deaf, hard of hearing, or have a speech disability can access telecommunications relay services by dialing 7-1-1.

Disaster Recovery Centers will soon open across the affected areas, where SBA staff will provide in-person assistance to applicants.

This article, "SBA Offers Low-Interest Disaster Loans for Southern California Wildfire Recovery" was first published on Small Business Trends