California Permitting Delays Force SBA to Extend Disaster Relief Deadlines for Los Angeles Wildfire Survivors

Local bureaucracy has prevented thousands of residents from rebuilding

WASHINGTON, Oct. 14, 2025 (GLOBE NEWSWIRE) -- The U.S. Small Business Administration (SBA) announced today that it has extended the disbursement period for Los Angeles County wildfire survivors with approved SBA disaster loans. This action provides a full twelve months for homeowners and business owners to draw down their approved SBA loan funds, including Home and Business Physical Disaster Loans. The extension was approved due to the failure of state and local permitting offices that have prevented rebuilding efforts for thousands of survivors affected by the January 2025 wildfires.

“No city in America has been approved for more federal disaster relief under the Trump Administration than Los Angeles – and yet that record relief can’t reach survivors nearly a year later because local bureaucracy is impeding recovery,” said SBA Administrator Kelly Loeffler. “The SBA is offering additional time to let victims access the loans they need to put their lives back together. If local leaders continue to bury their constituents in red tape, they should understand that they will continue to leave thousands of homeowners and business owners stranded.”

As the agency recently highlighted, Los Angeles was the single-largest recipient of SBA disaster relief in FY25, accounting for over two-thirds of all federal disaster aid due to the wildfires. To date, the SBA has approved over 12,000 loans for $3.2 billion in Los Angeles, but only 22% of the funding has been disbursed to survivors – most of whom cannot move forward with construction until they receive approval from state and local officials. According to recent reports, only about 1,200 rebuild permits have been issued across the City and County of Los Angeles, while the wildfires destroyed an estimated 16,000 structures.

Typically, disaster survivors have six months from the date of loan approval to fully disburse their approved funds. Given the extraordinary permitting delays in Los Angeles, the SBA is extending the disbursement period for all approved borrowers under this disaster declaration to ensure survivors have adequate time to access their funds and complete rebuilding once local approvals are secured.

Borrowers with questions about their loan status or disbursement process should contact the SBA’s Disaster Assistance Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.

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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

SBA HQ Press Team
U.S. Small Business Administration
press_office@sba.gov

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