The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in California about the approaching deadline of April 1, 2025, to apply for federal disaster loans. These loans are meant to offset economic losses caused by the Topanga Canyon Boulevard landslide, which occurred from March 9 to June 2, 2024.
The disaster declaration covers Kern, Los Angeles, Orange, San Bernardino, and Ventura counties. Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, agricultural cooperatives, nurseries, and private nonprofits affected financially by this disaster. However, agricultural producers like farmers and ranchers are not eligible unless they are involved in aquaculture.
EIDLs are intended for working capital needs due to the disaster and can be used even if there was no physical damage to the business. They can cover fixed debts, payrolls, accounts payable, and other bills that could not be paid because of the disaster.
"SBA loans help eligible small businesses cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Terms extend up to 30 years with interest accruing from the date of disbursement but payments deferred until 12 months after disbursement. The SBA determines loan amounts and terms based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted by April 1, 2025.