The U.S. Small Business Administration (SBA) announced a significant extension of payment terms for wildfire survivors in Los Angeles County who hold recently approved SBA disaster loans. The decision, effective immediately, gives homeowners and business owners an additional 12 months to access approved funds. The urgency of this extension arises from ongoing permitting delays at state and local offices. This has hampered rebuilding efforts for thousands of people affected by the devastating wildfires of January 2025.
SBA Administrator Kelly Loeffler emphasized the need for immediate relief, saying, «Under the Trump administration, no city in the United States has been approved for more federal disaster relief than Los Angeles. But after nearly a year, record-breaking relief cannot reach survivors because local bureaucracy is impeding recovery.» The SBA’s latest action aims to ensure those affected have the time they need to secure loans and begin the rebuilding process once local permits are granted.
Currently, Los Angeles stands out as the biggest beneficiary of SBA disaster relief. This accounts for more than two-thirds of federal assistance related to wildfires. The SBA has already approved more than 12,000 loans totaling $3.2 billion. But only about 22% of those funds have been disbursed, leaving many survivors in a precarious situation as they await local approval. According to the report, rebuilding efforts are woefully inadequate, with only about 1,200 rebuilding permits issued in a city that lost about 16,000 structures.
Challenges remain clear for small business owners and homeowners navigating this situation. The typical timeline for a disaster survivor to disburse approved loan funds is approximately six months. But with the unprecedented delays plaguing Los Angeles’ recovery efforts, the SBA’s extension could provide breathing room.
“I was approved for a loan, but I can’t start rebuilding because the permit is stuck in the system. This extension is helpful, but I need action from local authorities to access the loan,” complained one small business owner, who preferred to remain anonymous.
SBA encourages affected borrowers to inquire about their loan status or payment procedures. Anyone needing assistance can contact SBA’s Disaster Assistance Customer Service Center by calling (800) 659-2955 or emailing Disastercustomerservice@sba.gov.
This extension is a much-needed lifeline for those affected, but potential problems remain. Small business owners still have to contend with the slow pace and resulting complexities of local permitting. Bureaucratic hurdles may continue to extend recovery timelines, and planning for further delays can be critical to business sustainability during this period of uncertainty.
It’s important to know your local government’s procedures. Owners should consider working with their local planning or community development departments to gain insight into potential timelines and expedite applications when possible. Understanding these circumstances can alleviate some of the frustration you may face during recovery.
As the SBA continues to advocate for rapid action, business owners should stay informed of any additional announcements or changes that may impact recovery efforts. The interaction between federal support and local officials will be a determining factor in how quickly and effectively Los Angeles can rebuild its economy and community.
For further details, small business owners: SBA official announcement. While this extension is a significant step forward, the road to recovery remains a joint effort that requires collaboration between survivors and local officials.
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