The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in California about the approaching deadline to apply for federal disaster loans. These loans aim to offset economic losses caused by the Chinatown Apartment Complex Fire that occurred on September 13, 2024. The application deadline is July 25, 2025.
The disaster declaration affects the counties of Kern, Los Angeles, Orange, San Bernardino, and Ventura in California. Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits impacted by financial losses due to the disaster. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they are small aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster and can be utilized even if no physical damage was incurred by the business. The funds may be used to cover fixed debts, payroll expenses, accounts payable, and other bills that were not paid because of the disaster.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," stated 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."
Eligible entities can receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits with terms extending up to 30 years. Interest does not accrue nor are payments required until one year from the date of loan 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 via email at disastercustomerservice@sba.gov. Individuals who are deaf or hard of hearing can use telecommunications relay services by dialing 7-1-1.
Completed loan applications must be submitted no later than July 25.
About the U.S. Small Business Administration
The U.S. Small Business Administration supports American entrepreneurs and small business owners with resources needed for starting, growing, expanding their businesses or recovering from declared disasters through its network of field offices and partnerships with public and private organizations.