The devastating wildfires in Los Angeles have left many individuals and businesses struggling to rebuild and recover in the aftermath of the disaster. The Small Business Administration (SBA) Disaster Loan Program provides financial assistance to individuals and businesses affected by declared disasters. These low-interest loans aim to cover uninsured or underinsured losses, helping victims return to their pre-disaster conditions. Funding for SBA’s disaster loan program was recently replenished through the American Relief Act of 2025, which was signed into law by President Biden on December 21, 2024. For the Los Angeles wildfires, SBA has authorized financial support to impacted residents and businesses, offering loans for physical damage repairs and economic injury recovery.
Loan details
Businesses and private nonprofit organizations can apply for loans up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. Additionally, small businesses, agricultural cooperatives, aquaculture businesses, and most private nonprofits can apply for Economic Injury Disaster Loans (EIDL) to cover working capital needs caused by the disaster. Homeowners may apply for loans up to $500,000 to repair or replace damaged or destroyed real estate. Both homeowners and renters are eligible for loans up to $100,000 to repair or replace personal property, including vehicles.
Interest rates and terms
Interest rates on these loans can be as low as 4% for businesses, 3.625% for private nonprofit organizations, and 2.563% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue until 12 months after the first disbursement, and loan repayment can be deferred for 12 months for those experiencing financial hardship.
Application process
Applicants are encouraged to apply as soon as possible, as SBA will consider applications in the order received. SBA has expressed the government’s commitment to processing applications efficiently.
Required documentation includes proof of property ownership or a lease agreement, insurance policies, financial statements, and tax returns. SBA’s application review process will include a creditworthiness assessment as well as damage verification. Once approved, funds will typically be disbursed within 5 to 10 business days. Applications can be submitted online at SBA’s Disaster Loan Assistance Portal: sba.gov/disaster. SBA has also opened Business Recovery Centers in Los Angeles County to assist small businesses, private nonprofit organizations, and residents who sustained economic losses and physical property damages.
Client Alert 2025-017