WASHINGTON, Jan. 9, 2025 (GLOBE NEWSWIRE) — Today, Isabel Casillas Guzmán, administrator of the SBA announced that low-interest federal disaster loans are now available to Southern California businesses, homeowners, renters and private nonprofit organizations (PNP) following President Joe Biden’s decision. major disaster declaration. He statement Covers Los Angeles and adjoining Kern, Orange, San Bernardino, and Ventura counties due to wildfires and straight-line winds that began on January 7, 2025.
Administrator Guzmán will also join FEMA Administrator Deanne Criswell in Southern California this week to assess needs on the ground and ensure the SBA is fully prepared to help businesses, homeowners and renters affected by this disaster.
“As heroic firefighters and first responders continue to battle the devastating wildfires ravaging Southern California, the federal government is increasing resources to ensure Angelenos are prepared to recover and rebuild from this catastrophe.” said SBA Administrator Guzmán. “In response to President Biden’s major disaster declaration, the SBA is moving to provide financial relief to affected businesses and residents. Our continued prayers are with the brave people working to put out these fires, as well as all those who have lost their loved ones, their homes and their businesses due to this disaster. “We stand ready to support our fellow Americans for as long as it takes.”
Loans are available to businesses of all sizes and PNP organizations to repair or replace damaged or destroyed real estate, machinery, equipment, inventory and other business assets. The SBA also offers Economic Injury Disaster Loans (EIDL) to small businesses, small agricultural cooperatives, small aquaculture businesses, and most PNP organizations to help meet working capital needs caused by the disaster, even if there is no physical damage. EIDLs can be used to pay fixed debts, payroll, accounts payable, and other expenses that would have been covered if not for the disaster. Businesses can apply for loans of up to $2 million.
Disaster loans of up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are also eligible to receive up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
Interest rates can be as low as 4% for businesses, 3.625% for PNP organizations and 2.563% for homeowners and tenants, with terms of up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial situation. Interest does not begin to accrue until 12 months from the date of the first disbursement of the disaster loan, and loan payment may be deferred for 12 months from the date of the first disbursement.
The SBA encourages applicants to submit their loan applications as soon as possible. Applications will be prioritized in the order they are received and the SBA remains committed to processing applications as efficiently as possible. Funding for the SBA disaster loan program was recently replenished through the American Relief Act of 2025, signed into law by President Biden on December 21, 2024.
Applicants can apply online and receive additional information about disaster assistance at sba.gov/disaster. Applicants can also call the SBA Customer Service Center at (800) 659-2955 or send an email disastercustomerservice@sba.gov for more information about SBA disaster assistance. Individuals who are deaf, hard of hearing, or speech impaired may dial 7-1-1 to access telecommunications relay services. As soon as Disaster Recovery Centers open throughout the affected area, SBA staff will also be available to provide personalized assistance to disaster loan applicants.
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About the US Small Business Administration
The U.S. Small Business Administration helps fuel the American dream of business ownership. As the only resource and voice for small businesses backed by the strength of the federal government, the SBA provides entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a crisis. declared. disaster. Provides services through an extensive network of SBA field offices and partnerships with public and private organizations. For more information, visit www.sba.gov.
