November 16, 2018
The U.S. Small Business Administration (SBA) has issued a disaster declaration for Los Angeles County that will make low-interest federal disaster loans available to businesses and residents impacted by the Woolsey Fire announced SBA Administrator Linda McMahon. This SBA disaster declaration covers Los Angeles, Butte and Ventura counties as a result of the wildfires that began in California this month.
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available to businesses regardless of any property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property. Interest rates can be as low as 3.74 percent for businesses, 2.75 percent for private nonprofit organizations and 2 percent for homeowners and renters with terms up to 30 years.
Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.