SBA Offers Disaster Relief Loans to California Residents Affected by Recent Wildfires

As of January 24, 2025, the U.S. Small Business Administration (SBA) is offering low-interest disaster loans to assist California businesses, homeowners, renters, and private nonprofit organizations affected by the recent wildfires and straight-line winds that began on January 7, 2025.

SBA

Available Disaster Loans:

  • Business Physical Disaster Loans: Loans up to $2 million are available for businesses of all sizes and private nonprofit organizations to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets.
  • Economic Injury Disaster Loans (EIDL): These loans provide working capital to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations to help meet financial obligations that cannot be met due to the disaster.
  • Home Disaster Loans: Homeowners may apply for loans up to $500,000 to repair or replace damaged or destroyed real estate. Homeowners and renters are also eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

Interest Rates and Terms:

  • Businesses: Interest rates as low as 4%.
  • Private Nonprofit Organizations: Interest rates as low as 3.625%.
  • Homeowners and Renters: Interest rates as low as 2.563%.

Loan terms can extend up to 30 years. Notably, interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement, and loan repayment can be deferred for 12 months from the date of the first disbursement.

SBA

Application Process:

Applicants are encouraged to apply as soon as possible, as applications will be prioritized in the order received. Funding for the SBA’s disaster loan program was recently replenished through the American Relief Act of 2025, signed into law by President Biden on December 21, 2024.

SBA

To apply online and receive additional disaster assistance information, visit SBA’s Disaster Loan Assistance Portal. For further assistance, applicants may call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The SBA remains committed to supporting California’s recovery efforts and encourages all affected individuals and organizations to apply promptly for the available disaster assistance.

Stay Informed With The Monthly Digest.

Unlock new funding and business grant opportunities to accelerate the growth of your business.