Low-interest disaster loans offered by SBA for recovery efforts following Southern California wildfires
Fires and Windstorms: SBA Offers Disaster Loans for Californians
Grab some relief, Californians! The U.S. Small Business Administration (SBA) has jumped in to help businesses, homeowners, and renters in California recover from the devastating wildfires and strong winds that hit on January 7, 2025. President Joe Biden's major disaster declaration, which covers Los Angeles County and neighboring Kern, Orange, San Bernardino, and Ventura counties, paved the way for this assistance.
Administrator Isabel Casillas Guzman and FEMA Administrator Deanne Criswell are on their way to Southern California to assess the impact and ensure SBA resources are utilized effectively.
Need a hand with your recovery? Here's the scoop on SBA's disaster loans:
- Business Loans: Up to $2 million for businesses and private nonprofits to repair or replace damaged property, machinery, equipment, inventory, or other assets. Economic Injury Disaster Loans (EIDLs) are also available to help manage working capital issues caused by the disaster.
- Homeowner Loans: Up to $500,000 to restore damaged real estate.
- Homeowner and Renter Loans: Up to $100,000 to repair or replace personal property, including vehicles.
Rates are as low as:
- 4% for businesses.
- 3.625% for private nonprofit organizations.
- 2.563% for homeowners and renters.
With repayment terms of up to 30 years, apply early for a smoother, faster process! If your English isn't your first language, no worries! Use the telecommunications relay service by dialing 7-1-1.
Ready to apply? Head to sba.gov/disaster or dial (800) 659-2955 for more information. Don't forget to visit one of the Disaster Recovery Centers across the affected regions, where SBA staff will help you apply in person.
But wait, there's more! Here's a closer look at EIDLs and SBA Low-Interest Disaster Loans:
Economic Injury Disaster Loans (EIDL)
Eligibility:- Businesses, most private nonprofits, and small agricultural co-ops that meet the disaster area requirements and in need of substantial economic injury.- No physical damage needed; loans are based solely on financial impact.
Deadline:- October 8, 2025, to apply.
Loan details:- Working capital to cover expenses like rent, utilities, payroll, and fixed debts.- Cannot be used for physical repairs, expansion, dividends, or refinancing.- Terms determined by financial need.
SBA Low-Interest Disaster Loans (Property Damage)
Eligibility:- Homeowners, renters, and businesses with physical damage from wildfires or windstorms.
Deadline:- Closed for most property damage claims on March 31, 2025.- Still open for EIDL applications.
Need a hand differentiating between EIDL and FEMA Individual Assistance? Here are some important notes:
- EIDL does not cover profit losses or sales declines.
- FEMA cannot provide benefits that duplicate those from other sources like insurance or GoFundMe.
For EIDL applications, opt for the online portal or hotline before the October 8, 2025, deadline! Good luck in your recovery journey!
- Administrator Isabel Casillas Guzman and FEMA Administrator Deanne Criswell, upon their visit to Southern California, will focus on ensuring SBA resources are utilized effectively for the disaster relief, including the declaration of loans for businesses, homeowners, and renters who were affected by the wildfires and windstorms that occurred on January 7, 2025.
- To qualify for Economic Injury Disaster Loans (EIDLs), applicants must be businesses, most private nonprofits, or small agricultural co-ops that meet the disaster area requirements and have experienced substantial economic injury, with no physical damage needed. The deadline to apply for EIDLs is October 8, 2025.
- SBA Low-Interest Disaster Loans (Property Damage), on the other hand, are still open for businesses, homeowners, and renters with physical damage from the wildfires or windstorms, as they can receive up to $2 million for businesses, up to $500,000 to restore damaged real estate, and up to $100,000 to repair or replace personal property, including vehicles. The repayment terms are as low as 2.563% for homeowners and renters, with a maximum of 30 years.
