SBA Disaster Loans Available for Los Angeles Wildfire Recovery

SBA Disaster Loans – California Wildfires

The SBA offers California disaster relief through several types of loans. Each of these California wildfire disaster loans offer financial relief in Los Angeles Kern, Orange, San Bernardino, or Ventura counties and are designed to help affected individuals and businesses recover:

Business Physical Disaster Loans

• Available to businesses of all sizes and private nonprofits.
• Provides up to $2 million for the repair or replacement of damaged real estate, machinery, equipment, inventory, and other business assets.
• Credit scores and SBSS scores will be reviewed to determine eligibility.
• Collateral is not a reason for decline, but loans over $50,000 require available collateral.

Economic Injury Disaster Loans (EIDLs)

• Business loans up to $2 million available to small businesses, small agricultural cooperatives, and most private nonprofits.
• Provides working capital to help businesses cover expenses such as fixed debts, payroll, accounts payable, and operating costs.
• Available even if the business did not suffer physical damage.
• Businesses can access up to $100,000 in unsecured funds, which can be disbursed immediately after signing loan documents.

Home Disaster Loans

• Available to homeowners and renters who suffered property damage.
• Homeowners can borrow up to $500,000 to repair or replace damaged real estate.
• Homeowners and renters can borrow up to $100,000 to replace damaged or destroyed personal property, including vehicles.
• Credit scores are reviewed using Vantage 3.0.

If an applicant receives an initial denial due to credit, there is a path to appeal, which involves a deeper financial review.

SBA Disaster Loans, Who Qualifies?

If you are a business owner, homeowner, or renter in one of the federally declared disaster zones (Los Angeles, Kern, Orange, San Bernardino, or Ventura counties), you are eligible to apply for an SBA disaster loan. Even if your business did not suffer physical damage, you may qualify for an EIDL loan to help cover lost revenue and ongoing expenses.

Existing SBA disaster loans, including COVID-19 EIDLs, do not disqualify applicants from obtaining additional assistance.

What is the interest rate for SBA Disaster Loans and what are the loan terms?

The SBA is offering highly favorable loan terms on their California wildfire disaster loans to ensure accessibility for all those in need:

• Businesses: Interest rates as low as 4%.
• Private Nonprofits: Interest rates as low as 3.625%.
• Homeowners and Renters: Interest rates as low as 2.563%.
• Repayment Terms: Loans can be repaid over a period of up to 30 years, based on the applicant’s financial condition.
• Deferred Payments: No interest accrues, and payments are deferred for the first 12 months.
• No prepayment penalties, meaning borrowers can pay off their loans early without extra fees.
•  Additional deferments may be possible by working with the SBA’s servicing team.

Loan Requirements

Before applying, it is important to understand the SBA’s credit requirements:

• Credit History: Applicants must have a credit history that is acceptable to the SBA. While this can encompass a wide range of credit histories, the SBA strongly encourages everyone to apply.
• Repayment Ability: Applicants must demonstrate their ability to repay the loan.
• Credit Available Elsewhere: The SBA assesses whether an applicant has sufficient funds or access to private financing. If an applicant is determined to have Credit Available Elsewhere, they may be offered a loan at a higher interest rate.

If an applicant initially receives a loan offer with a higher rate due to Credit Available Elsewhere, they may appeal this determination for reconsideration.

SBA Disaster Loan Application

The SBA urges those affected to apply as soon as possible. SBA Disaster Loan applications are processed in the order they are received, and early applicants will receive priority.

Three Ways to Apply

In addition, Disaster Recovery Centers will open throughout affected areas, where SBA representatives will be available to provide in-person assistance with applications.

Additional Support & Accessibility

The SBA is committed to ensuring that all affected individuals have access to assistance:

• SBA staff will be on the ground to assist applicants at Disaster Recovery Centers.
  • LOS ANGELES COUNTY
    Disaster Loan Outreach Center
    Pasadena City College Community Education Center (PCC CEC)
    Multi-Purpose Room
    3035 E. Foothill Blvd., Pasadena, CA 91107
    • Mondays – Fridays, 9 a.m. – 6 p.m.
    • Saturdays, 9 a.m. – 4 p.m.
    • Closed Monday, Jan. 20, in observance of MLK holiday
  • VENTURA COUNTY
    Disaster Loan Outreach Center
    Ventura County Community
    Foundation (VCCF)
    Economic Development Collaborative
    4001 Mission Oaks Blvd., Ste. A‑1, Camarillo, CA 93012
    • Mondays – Fridays, 8 a.m. – 5 p.m.
    • Closed Monday, Jan. 20, in observance of MLK holiday
• People with hearing or speech disabilities can use 7-1-1 relay services.

Backed by Federal Support

These disaster relief loans are funded through the American Relief Act of 2025, ensuring that adequate financial resources are available to help affected individuals and businesses.

As the fires are ongoing, the road to recovery will be a long process, but the SBA is here to help. If you or your business has been impacted by the California wildfires, applying for an SBA disaster loan could be the critical first step toward rebuilding. With flexible terms, low-interest rates, and dedicated support, these loans provide the financial assistance you need to move forward.