Los Angeles’s sudden wildfires have left many residents displaced, with federal agencies now providing assistance and loans to disaster victims and affected businesses.
Since the 7th, wildfires have been raging across Southern California, destroying tens of thousands of buildings and impacting nearly 100,000 evacuees.
Residents in the disaster area can now apply for financial assistance from the Federal Emergency Management Agency (FEMA). A household can receive up to $770 for emergency supplies, $43,600 for home repairs and temporary shelter, as well as an additional $43,600 for medical expenses, funeral costs, and more. Before applying, victims must first file property claims with their insurance companies. Only losses not covered by insurance can be sought for federal aid.
Disaster victims can also apply for low-interest loans from the Small Business Administration (SBA). According to SBA Economic Development Commissioner Manli Guo, those applying for home repair can request loans up to $500,000 at low-interest rates, while movable property like vehicles can qualify for loans up to $100,000.
Applicants to the SBA must provide credit records to prove repayment ability and can secure housing loans with rates as low as 2.563% for up to 30 years, to repair or replace disaster-affected homes and vehicles.
Guo explained, “Congress doesn’t yet know how much funding will be allocated. Similar to the initial pandemic response, additional funding may be provided once the initial funds are exhausted. Therefore, it is advisable to apply and get the process underway.”
If applicants find the loan conditions unsatisfactory after approval, Guo reassured them, stating, “You can apply, and even if you are approved, you can ultimately decide not to take the loan.”
She emphasized that once disaster victims and insurance companies determine eligible claims, they can simultaneously apply for assistance or loans from both FEMA and SBA. Even if an application is rejected, there is an avenue for appeal. Guo also reminded applicants to document the damaged property as evidence.
Additionally, businesses, non-profit organizations, and renters affected by the disaster can also seek federal loans. The deadline for applying for loans for physical damages to businesses is March 10, while economic loss loans can be applied for until October 8. For more information, visit the official websites.