SBA Assistance for Businesses Affected by California Wildfires

Wildfires can have a devastating impact on California businesses, leaving owners struggling with financial losses and operational uncertainties. For those affected, the Small Business Administration (SBA) offers critical support to help rebuild and recover.

If you’re a California business owner navigating the aftermath of wildfire disasters, this guide outlines how SBA assistance programs can provide relief, restore operations, and prepare your business for the future.

What is SBA Disaster Assistance?

The SBA’s disaster assistance programs are designed to help businesses recover from physical and economic damages caused by natural disasters, such as wildfires. These programs offer low-interest loans, grants, and resources that help businesses restore their operations, retain employees, and remain financially stable even in the face of disruption.

The SBA serves as a federal lifeline during and after disasters, ensuring that business owners receive the support they need to move forward.

How SBA Assistance Supports California Business Owners

1. Economic Injury Disaster Loans (EIDL)

Economic Injury Disaster Loans are a key tool for businesses affected by the wildfires. These loans are designed to help cover the financial obligations and operating expenses your business would have met if the disaster had not occurred.

• Loan Amount: Businesses can borrow up to $2 million.
• Interest Rates: The loans offer competitive low-interest rates (approximately 4% for small businesses).
• Repayment Terms: Flexible repayment terms of up to 30 years are available.

If your business has sustained significant operational disruptions or financial losses due to the California wildfires, you should consider an EIDL application to obtain capital for recovery.

2. Business Physical Disaster Loans

For businesses that have experienced property damage, the SBA provides Physical Disaster Loans. These loans help repair or replace damaged assets, including real estate, equipment, inventory, and other property essential for operations.

• Loan Amount: Up to $2 million.
• Eligibility: Funds may be used for uninsured or underinsured losses.
• Coverage: Includes assets critical to daily operations.

This financial support is invaluable for restoring your physical workspace, restocking inventory, or replacing tools and equipment impacted by wildfires.

3. Microloans and Grants

While physical disaster and EIDL loans support larger needs, the SBA also collaborates with other organizations to offer microloans and grants. These smaller amounts can be used for immediate recovery efforts, such as securing temporary operational locations or covering short-term expenses.

4. Resources for Workforce Recovery

Sustaining your workforce is essential to long-term recovery. Beyond financial assistance, the SBA and organizations like the Los Angeles Economic Development Corporation (LAEDC) provide tailored support for workforce-related challenges.

• Wage subsidies
• Layoff aversion services
• On-the-job training programs
• Employee retention strategies

These resources ensure that you continue to support your employees while stabilizing your business operations.

Business Assistance Through the Los Angeles Economic Development Corporation (LAEDC)

The LAEDC is actively supporting businesses affected by the wildfires. Their programs complement SBA efforts, offering no-cost confidential consultation services and access to local resources for recovery.

Key Services Offered by LAEDC:

• Access to Capital: Guidance on securing loans, grants, and other financial resources.
• Permitting Assistance: Help navigating local regulations for rebuilding or relocating.
• Procurement Opportunities: Information on contracting opportunities with government agencies.
• Planning for Business Operations Post-Disaster: Step-by-step guides on rebuilding sustainably.

Visit their Wildfire Economic Recovery Resources for more detailed information.

5 Steps to Apply for SBA Disaster Assistance

Applying for SBA disaster assistance is straightforward, but timely action is critical. Here’s how to get started:

1. Assess Damages

Document all physical damages and calculate your financial losses (both insured and uninsured). This will help you determine which SBA programs suit your needs.

2. Complete an Application Online

Visit the SBA Disaster Loan Assistance Portal to begin your application. Ensure you have the following documents ready:

• Financial statements
• Tax returns
• A detailed account of all damages

3. Submit Supporting Documents

Once your application is submitted, the SBA will request additional documentation to process your claim. Be thorough and responsive to expedite the review process.

4. Speak with an SBA Representative

SBA representatives are available to guide business owners through the entire application process. They offer personalized support that simplifies a potentially overwhelming situation.  Applicants also may call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. People who are deaf, hard of hearing, or have a speech disability can dial 7-1-1 to access telecommunications relay services. As soon as Disaster Recovery Centers open throughout the affected area, SBA staff also will be available to provide in-person one-on-one assistance to disaster loan applicants.

5. Stay Updated

Processing times vary depending on the program. Stay engaged and monitor the progress of your application through the SBA’s online portal or by contacting their customer service team.

Additional Wildfire Preparations and Resources

Wildfires are an unfortunate reality for many California businesses. Being prepared can mitigate risks and help you respond effectively when disaster strikes.

Proactive Steps to Protect Your Business

• Review your insurance coverage to ensure it includes natural disasters.
• Develop a disaster recovery plan that outlines steps to protect employees, inventory, and property.
• Create an emergency communication system to inform your team of procedures during disasters.

Consider downloading LAEDC’s Guide to Planning for Business Operations After Natural Disasters for step-by-step instructions on creating a business continuity plan.

Take Action to Secure Your Business’s Future

Navigating the aftermath of a natural disaster is challenging, but programs like SBA disaster assistance provide the resources and support needed to rebuild stronger than before. From EIDL loans to business recovery grants, these solutions help California businesses stay resilient during tough times.

If you’re unsure how to get started or would like expert advice, connect with local organizations like LAEDC for no-cost consultations tailored to your needs.

Your business’s recovery starts now—take the first step by applying for SBA disaster assistance today.