What federal relief loans are open to Los Angeles County businesses and residents
Los Angeles County homeowners, renters, businesses and nonprofits impacted by devastating wildfires over the past week are all eligible for low-interest disaster relief loans through the Small Business Administration.
While federal assistance grants are available, the U.S. government is also offering aid to LA businesses and residents in the form of SBA loans which are "trauma-informed and designed," Anita Steenson, an SBA spokeswoman, said. This means low-interest rates — 4% for businesses and 3.625% for nonprofits — and no payments or interest accrues for the first year, she said.
As she spoke at the opening of a FEMA Disaster Recovery Center at UCLA Tuesday, Steenson said those looking to apply can sort out their insurance claims while applying for SBA loans at the same time. She said they don't have to wait until all the insurance paperwork is sorted, and the SBA will just apply any insurance coverage to whatever loan assistance it decides to offer.
Steenson also suggested applying for FEMA assistance — grants which don't have to be paid back — before applying for SBA loans.
To apply for SBA loans, visit the federal agency's website at sba.gov/disaster.
Applications can also be submitted at one of two FEMA Disaster Recovery Centers in LA County, where SBA workers are on-hand to help. Steenson suggested applying online before coming into one of the centers to make the process quicker and easier.
Here are the two Disaster Recovery Centers which opened Tuesday, Jan. 14. More information can be found here.
- UCLA Research Park West
10850 West Pico Blvd.
Los Angeles, CA 90064
Hours of operation – Daily: 9 a.m. to 8 p.m. - Pasadena City College Community Education Center
3035 East Foothill Blvd.
Pasadena, CA 91106
Hours of operation – Daily: 9 a.m. to 8 p.m.
See a full list of federal, state and local relief resources for LA businesses and employers here
You can check if you're eligible for a federal disaster loan by entering the address of the property affected on the SBA website here.
The SBA's Disaster Assistance Customer Service Center can be reached at 800-659-2955 and disastercustomerservice@sba.gov.
Here is a rundown of what's available to homeowners, renters, nonprofits and businesses.
Disaster relief loans for renters
Renters impacted by the Los Angeles County wildfires can borrow up to $100,000 to repair or replace personal property such as clothing, cars, furniture and home appliances. These federal loans only cover losses not already covered by insurance and other forms of relief and aid. Interest rates on these loans do not exceed 4%. You can apply by visiting here.
Disaster relief loans for homeowners
Homeowners can apply for up to $500,000 to repair or replace their primary home. The federal low-interest loans are not available for homes which are vacation properties or other sorts of secondary homes. They can also borrow up to $100,000 for personal property repair and replacement, the same smaller loan which is available to renters for things like clothing, furniture and cars.
The loans cannot be used to upgrade homes or make new editions, unless those changes are required by the local building code. In some cases — such as when an applicant doesn't have credit available elsewhere or has suffered substantial disaster damage — SBA can refinance all or part of a previous mortgage.
There may also be up to a 20% increase in the loan amount above the real estate damage, which is intended for improvements that lower the risk of future property damage.
More information on these loans can be found here. You can apply by visiting here.
Disaster relief loans for businesses and nonprofits
Businesses and nonprofit organizations which have suffered physical damage or destruction in the LA County wildfires can apply for federal low-interest loans of up to $2 million.
Like the SBA loans for homeowners and renters, these loans cover losses not already covered by insurance. They are intended to pay for the repair or replacement of things like machinery, equipment, inventory and real property. As with the home loans, these loans cannot be used to upgrade or expand a business, except as such changes are required by building codes.
There can also be a 20% increase in the loan amount above real estate damage, depending on the circumstances and verification by SBA. Interest rates vary — full information on this and more can be found here. You can apply by visiting here.