SBA presses Los Angeles wildfire borrowers to accept approved disaster funds by June 30

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SBA presses LA wildfire borrowers

Highlights

Los Angeles wildfire disaster loan recipients must execute and accept approved SBA funds by June 30, 2026, after which undisbursed funds will be reviewed case by case.
The SBA extended relief deadlines and issued regulatory guidance to bypass local permitting delays, aiming to support ongoing commercial and residential rebuilding in Southern California.
Eligible Los Angeles borrowers in Fiscal Year 2025 may increase disaster loans by up to 20% of verified physical damage for mitigation measures to protect against future events.

Loan acceptance steps and extended recovery timeline

As reported by the U.S. Small Business Administration, borrowers in Los Angeles City and County must complete the final steps to execute and accept approved disaster loan funds by June 30, 2026. The agency says approved but undisbursed assistance after that date will be available only on a case-by-case basis for this disaster.

The loans were made available after the wildfires and straight-line winds that began on January 7, 2025, covering businesses, homeowners, renters and private nonprofit organizations in Southern California. The assistance includes both physical disaster loans and Economic Injury Disaster Loans, while the SBA also opened Disaster Loan Outreach Centers and Business Recovery Centers to support applications and in-person recovery help.

As rebuilding obstacles continue, including state and local permitting delays, the SBA has repeatedly extended disaster relief deadlines to give borrowers more time to access funds. In January 2026, on the one-year anniversary of the wildfires, the agency extended disbursement deadlines through June 30, 2026 and beyond for borrowers still unable to move ahead with repairs and reconstruction, then later issued regulatory guidance aligned with President Trump's Executive Order to help eligible applicants bypass permitting delays.

Recovery support and implications for Los Angeles rebuilding

The SBA says it has kept staff and leadership engaged in Los Angeles throughout the recovery period as the region remains its largest recipient of disaster assistance in Fiscal Year 2025. Administrator Loeffler visited the area in March 2025, returned to Pacific Palisades in September 2025 and made a third trip in February 2026 with EPA Administrator Lee Zeldin to discuss faster rebuilding in the Palisades and Eaton communities.

Borrowers can complete loan acceptance through the MySBA Loan Portal, by scheduling an appointment through the agency, or by visiting a local recovery center for in-person assistance. Los Angeles borrowers may also qualify for an increase of up to 20% of their verified physical disaster damage to pay for mitigation improvements intended to better protect homes and businesses from future disasters.

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