The federal Small Business Administration approved disaster assistance for businesses and nonprofits affected by the Boyle Heights warehouse fire in June, making low-interest loans available for economic recovery.
The disaster declaration, approved at the request of California Governor Gavin Newsom's office, covers Kern, Los Angeles, Orange, San Bernardino, and Ventura counties, according to the announcement. The SBA's Economic Injury Disaster Loan program makes funds available to eligible small businesses, small agricultural cooperatives, and private nonprofit organizations, including faith-based organizations, that experienced financial losses directly related to the fire.
Disaster loans provide working capital to pay fixed debts, payroll, accounts payable, and other expenses that could not be paid because of the disaster, according to the SBA. Loans are available for up to $2 million, with interest rates as low as 4% for businesses and 3.625% for private nonprofits, and repayment terms of up to 30 years. Interest does not accrue and payments are not due until 12 months after the first loan disbursement.
The SBA will operate Business Recovery Centers in the Los Angeles area starting Tuesday, August 18, to help businesses and nonprofits with applications. The deadline to apply for an Economic Injury Disaster Loan is May 14, 2027.