The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in California affected by a coastal storm and high surf event that occurred from December 23, 2024, to January 3, 2025. This announcement follows a disaster declaration issued in response to a request from Governor Gavin Newsom on February 11, 2025.
The counties covered under this declaration include Monterey, San Benito, San Mateo, Santa Clara, and Santa Cruz. The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofits that experienced financial losses due to the disaster. However, agricultural producers such as farmers or ranchers are not eligible unless they are aquaculture enterprises.
EIDLs aim to cover working capital needs caused by the disaster and can be used for fixed debts, payroll, accounts payable, and other bills that could have been paid if the disaster had not occurred. Loans can reach up to $2 million with interest rates set at 4% for small businesses and 3.625% for private nonprofits. Loan terms may extend up to 30 years based on each applicant’s financial condition. Interest will not accrue nor will monthly payments be required until one year after the initial disbursement.
Starting Friday, February 14th, SBA customer service representatives will be available at a Virtual Business Recovery Center to assist with questions about the loan program and help with application processes.
Virtual Business Recovery Center
Mondays – Fridays
8:00 a.m. – 4:30 p.m.
FOCWAssistance@sba.gov
(916) 461-7673
The center will be closed on Monday, February 17th for President’s Day.
Applicants are encouraged by the SBA to submit their applications promptly as they will be processed in order of receipt. For online applications or more information about SBA disaster assistance programs visit SBA.gov/disaster or contact their Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is November 13th.