Los Angeles County Supervisor Kathryn Barger Wednesday encouraged residents and small business owners impacted by the Eaton Fire to apply for federal disaster loans ahead of a final extended deadline to receive financial assistance.
The U.S. Small Business Administration has extended a timeline for its SBA Home Physical Disaster Loans and Business Physical Disaster Loans. Borrowers approved for the loans will now have 24 months from the date of their loan authorization agreement to draw down their approved funds.
The extension recognizes that many survivors continue to experience delays related to insurance claims and other rebuilding challenges, according to Barger.
“It’s encouraging that U.S. EPA Administrator Lee Zeldin has recognized the significant progress being made to accelerate permitting and rebuilding in Los Angeles County,” Barger said in a statement. “While that progress is making a real difference, many wildfire survivors continue to face challenges that are beyond their control.”
She said the SBA extension provides much-needed flexibility, giving families and small businesses additional time to access the recovery funding they’ve already been approved for.
“I encourage every eligible borrower to take advantage of this opportunity as they continue rebuilding their homes, businesses and lives,” Barger said in her statement.
The SBA has approved more than $3.4 billion in disaster assistance for nearly 13,000 Los Angeles-area borrowers affected by the January 2025 wildfires. The agency has identified ongoing rebuilding delays as the reason for providing this final extension.
Eligible borrowers who have questions about their disaster loan or the disbursement process are encouraged to contact the SBA Disaster Assistance Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for assistance.
“I appreciated the opportunity to speak with SBA Administrator Kelly Loeffler earlier this week to discuss several issues affecting wildfire recovery, including this important extension,” Barger said. “It gave me the opportunity to reaffirm just how critical this additional time is for Los Angeles County wildfire survivors.”
The supervisor also raised concerns about what she described as a significant financing gap many homeowners are facing during reconstruction. Under federal duplication of benefits requirements, the SBA may withhold portions of an approved disaster loan until insurance proceeds are finalized.
At the same time, many insurance companies do not release the full amount needed to rebuild until a home receives a Certificate of Occupancy, according to Barger.
“That leaves some families without access to the funds they need during construction, even though those resources have already been approved. I appreciate Administrator Loeffler’s willingness to examine this issue and work toward a solution so survivors can access the financing they need to keep rebuilding,” Barger said in her statement.