SBA offers low-interest loans to wildfire victims

Photo by Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images

Low-interest federal disaster loans are now available to Southern California businesses, homeowners, renters and private nonprofit organizations following President Joe Biden's major disaster declaration for the Los Angeles County wildfires, the Small Business Administration announced Friday.

The declaration covers Los Angeles and the contiguous counties of Orange, San Bernardino, Kern and Ventura due to wildfires and straight-line winds that began Jan. 7.

SBA Administrator Isabel Casillas Guzman will join FEMA Administrator Deanne Criswell in Southern California to assess on-the-ground needs and ensure the SBA is fully prepared to assist businesses, homeowners and renters impacted by the 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," Guzman said in a statement.

"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," she added.

Loans are available to businesses of all sizes and private nonprofit 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 to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofits 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.

The SBA encourages applicants to submit their loan applications as soon as possible. Applications will be prioritized in the order received.

Funding for the SBA's disaster loan program recently was replenished through the American Relief Act of 2025, signed into law by Biden on Dec. 21, 2024.

Applicants may apply online and receive additional disaster assistance information at sba.gov/disaster. Applicants also may call SBA's Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on disaster assistance.

People who are deaf, hard of hearing, or have a speech disability can dial 7-1-1 to access telecommunications relay services. As soon as Disaster Recovery Centers open throughout the affected area, SBA staff also will be available to provide in-person one-on-one assistance to disaster loan applicants.