The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in California about the approaching deadline to apply for federal disaster loans related to the Lake Fire. The fire occurred from July 5 to August 4, 2024, and affected several counties including Kern, San Luis Obispo, Santa Barbara, and Ventura.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration. Eligible entities include small businesses, small agricultural cooperatives, nurseries, and certain private nonprofits that experienced financial losses due to the fire. However, the SBA cannot provide loans to agricultural producers such as farmers or ranchers unless they are involved in aquaculture.
These EIDLs aim to address working capital needs caused by the disaster. They can be used for various expenses like fixed debts, payroll, accounts payable, and other bills that went unpaid due to the fire.
"SBA loans help eligible small businesses cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings 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 no interest accrual or payments required until one year after the first loan disbursement. The SBA determines loan amounts based on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center via phone or email. Completed applications must be submitted by June 6.
The U.S. Small Business Administration supports entrepreneurs and small business owners by providing resources needed for starting, growing, expanding businesses or recovering from disasters through its extensive network of field offices and partnerships.