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. This announcement was made by SBA Administrator Isabel Casillas Guzman. The declaration covers Los Angeles and the surrounding counties of Kern, Orange, San Bernardino, and Ventura due to wildfires and straight-line winds that began on January 7, 2025.
Administrator Guzman will join FEMA Administrator Deanne Criswell in Southern California this week to assess needs on the ground and ensure preparedness in assisting those 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," 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."
Businesses of all sizes and PNP organizations can apply for loans up to $2 million to repair or replace damaged assets. Economic Injury Disaster Loans (EIDLs) are also available for small businesses affected by the disaster. Homeowners may borrow up to $500,000 for real estate repairs or replacement. Homeowners and renters can receive up to $100,000 for personal property damage.
Interest rates start at 4% for businesses, 3.625% for PNP organizations, and 2.563% for homeowners and renters with terms up to 30 years. Loan amounts depend on each applicant's financial situation with no interest accruing until a year after the first disbursement.
The SBA encourages prompt submission of loan applications as they will be prioritized in order received. Funding comes from the American Relief Act of 2025 signed by President Biden on December 21, 2024.
Applicants can apply online at sba.gov/disaster or call (800) 659-2955 for more information.