Los Angeles County’s wildfires this past week have caused at least 25 deaths and have left Los Angeles homeowners, tenants, businesses, and nonprofits grieving and coping with property loss. Besides federal assistance grants through FEMA, the federal government is providing Small Business Administration Loans for disaster relief. According to Anita Steenson, spokeswoman for SBA, these disaster relief loans are “trauma-informed and designed,” with low interest rates (3.625% for nonprofits and 4% for businesses) and no payments or interest accrual for the first year of the loan.

Steenson spoke Tuesday at UCLA at the opening of a FEMA Disaster Recovery Center. She noted that SBA loans can be applied for while applicants are still sorting out their insurance claims. Rather than wait, applicants can apply for both; SBA will apply any insurance coverage to the loan assistance. Steenson did suggest applying for FEMA assistance first before applying for an SBA loan. 

Affected residents, nonprofits, and businesses can apply for FEMA at DisasterAssistance.gov and for SBA loans at sba.gov/disaster or in person at two newly opened FEMA Disaster Recovery Centers in LA County:

UCLA Research Park West
10850 West Pico Blvd.
Los Angeles, CA 90064

Pasadena City College Community Education Center
3035 East Foothill Blvd.
Pasadena, CA 91106

Both centers are open daily from 9 a.m. to 8 p.m., and SBA workers are available on-site to help. Steenson suggested applying online if at all possible, to keep the process efficient and quick for all applicants.

Check if you are eligible for a federal disaster relief loan by entering the address of the affected property on the SBA website. You can also reach out directly to the SBA’s Disaster Assistance Customer Service Center at 800-659-2955 or by email at [email protected].

Disaster Relief for Homeowners

Federal low-interest loans of up to $500,000 are available to repair or replace a homeowner’s primary home. Vacation properties and secondary homes are excluded from eligibility. Homeowners can also apply for up to $100,000 for personal property repair and replacement (e.g., for cars, furniture, clothing, and personal possessions). These loans are specifically for repair and replacement and cannot be used for upgrades or home additions unless these are necessary to bring the home into compliance with local code. If an applicant doesn’t have credit or their home has suffered severe damage, SBA may refinance all or part of a mortgage. Learn more here. 

Disaster Relief for Renters

Federal loans of up to $100,000 are also available to impacted LA County renters for repair or replacement of personal property, such as cars, furniture, home appliances, clothing, and other personal possessions. These are the same loans available to homeowners to address damage to personal property, and they cannot be used to cover losses already covered by insurance or other aid. Learn more here. 

Disaster Relief for Nonprofits and Businesses

Federal low-interest loans of up to $2 million are available to nonprofit organizations and businesses that have suffered physical damage to their facilities and property. These loans can be used to repair or replace property, equipment, inventory, and machinery. The same restrictions to eligibility apply. Find out more here.

Other Resources

The office of LA Mayor Karen Bass is also keeping a master list of disaster relief resources updated, including housing and shelter support, youth assistance, and rapid response and layoff aversion services. The mayor is facing backlash after she decided to travel out of the country at the time of the wildfires, and for having approved a budget decreasing funding for the Los Angeles Fire Department.

For those impacted, taking swift action to secure financial aid and explore resources can help accelerate recovery efforts and ensure long-term stability in the wake of these devastating wildfires.