WASHINGTON, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Today, on the one-year anniversary of the Los Angeles County wildfires, the U.S. Small Business Administration (SBA) announced it is once again extending disaster relief deadlines for survivors amid state and local permitting delays that have prevented rebuilding for thousands of residents. This action will allow homeowners and business owners to draw down their approved SBA loan funds, including Home and Business Physical Disaster Loans, until June 30, 2026.
In total, SBA has approved over $3.2 billion in funding for Los Angeles County – representing over half of all disaster assistance delivered by the agency in Fiscal Year 2025.
“The wildfire recovery effort in California has been a national disgrace under the leadership of Governor Gavin Newsom and Mayor Karen Bass. While the Trump Administration surged every imaginable resource to the state – including an unprecedented $3.2 billion in SBA loans – virtually zero survivors have been able to rebuild due to local permitting backlogs,” said SBA Administrator Kelly Loeffler. “Once again, the SBA is extending deadlines to give innocent residents more time to secure their permits and access the loans they need to begin construction. But make no mistake: Los Angeles will remain devastated as long as its state and local leaders continue to impose bureaucracy and stall recovery.”
Typically, disaster survivors have six months from the date of SBA loan approval to fully disburse their approved funds. The agency initially extended its disaster loan disbursement deadlines in October of last year after determining that “extraordinary” delays for rebuild permits and widespread backlogs were preventing California borrowers from drawing down approved loan funding.
Although Governor Gavin Newsom has characterized the state’s disaster response as “historic,” only about 2,600 rebuild permits have been issued across the City and County of Los Angeles, where the wildfires destroyed an estimated 16,000 structures. In total, less than 15% of all homes destroyed by the fires have received necessary approvals to rebuild.
Likewise, Mayor Karen Bass initially celebrated completion of the “first” rebuilt home in November of last year, but media reports later revealed that the home’s contractors had secured its rebuild permit before the wildfires struck, as part of a planned demolition. As of today, Los Angeles County reports that just seven structures have been completed in the year since the wildfires took place.
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.
# # #
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and 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
