The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in California about the approaching deadline of July 21, 2025, for applying for federal disaster loans. These loans aim to mitigate economic losses resulting from the Park and Borel Fires that occurred between July 24 and August 26, 2024.
This disaster declaration affects several counties in California, including Butte, Colusa, Glenn, Inyo, Kern, Kings, Los Angeles, Mendocino, Plumas, San Bernardino, San Luis Obispo, Santa Barbara, Shasta, Sutter, Tehama, Trinity, Tulare, Ventura and Yuba.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration. It targets small businesses and private nonprofits that have experienced financial setbacks due to the fires. However, agricultural producers are generally not eligible unless they are small aquaculture enterprises.
These loans address working capital needs arising from the disaster. They can be used for various expenses such as fixed debts and payroll even if no physical damage was sustained by the business.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," stated Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. "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 starting at 4% for small businesses and 3.25% for nonprofits. The terms can extend up to 30 years without accruing interest or requiring payments until one year after disbursement. The SBA determines loan amounts based on each applicant’s financial situation.
Interested parties can apply online at sba.gov/disaster or contact the SBA Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for further assistance. Those with hearing or speech disabilities may use telecommunications relay services by dialing 7-1-1.
Completed applications must be submitted by July 21.