Wildfires – CA Declaration #16603 and 16604

Wildfires – CA Declaration #16603 and 16604 
For fires which occurred 8/14/20-9/26/20 

What support is SBA offering for victims of the Northern CA wildfires? 

A Presidential Disaster declaration has activated for several Northern CA countries affected by the wildfires.  This declaration activates both FEMA and SBA to offer assistance.   FEMA offers grant  programs and SBA offers low-interest loans for homeowners, renters, businesses of all sizes and nonprofits to help repair or replace uninsured losses and economic injury loans for small businesses and nonprofits.  


What counties are covered by this declaration? 

For physical disaster loans: Butte, Lake, Lassen, Monterey, Napa, San Mateo,  Santa Clara, Santa Cruz, Solano, Sonoma, Trinity, Tulare & Yolo. 

For economic injury, the counties above plus the contiguous counties of: Alameda, Colusa, Contra Costa, Fresno, Glenn, Humboldt, Inyo, Kings, Marin, Mendocino, Merced, Modoc, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Luis Obispo, Shasta, Sierra, Siskiyou, Stanislaus, Sutter, Tehama & Yuba. 


When do I have to file an application? 

Application Filing Deadlines are as follows:  

Physical Damage: November 23, 2020 

Economic Injury: May 24, 2021 


Wildfires – CA Declaration #16704 and 16705 
For fires which occurred 9/4/20 onward 

What counties are covered by this declaration? 

For physical disaster loans: Fresno, Los Angeles, Madera, Mendocino, Napa, San Bernardino, San Diego, Shasta, Siskiyou & Sonoma  

For economic injury, the counties above plus the contiguous CA counties of: Del Norte, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Marin, Mariposa, Merced, Modoc, Mono, Monterey, Plumas, Riverside, San Benito, Solano, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo; La Paz, AZ; Clark, NV & Jackson, Josephine and Klamath in OR. 


When do I have to file an application? 

Application Filing Deadlines are as follows:  

Physical Damage: December 15, 2020 

Economic Injury: July 16, 2021 


FAQ's for all Wildfire Declarations

How do people apply for assistance? 

Applicants may apply online or may download and print applications to complete off-line and mail to SBA.  People should use the applications found here: http://disasterloanassistance.sba.gov/.  

Please note this is a different application from COVID EIDL program.  

If applicants decide to print out and mail applications, applications and supporting documents should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. 

Using the online application is recommended. 


Where do applicants go for assistance with the disaster loan application? 

SBA has created a Virtual Business Recovery Center which is available by phone, Monday-Friday from 5:00 am – 5:00pm PT at (916) 735-1500 or by emailing: FOCWAssistance@sba.gov. 

Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. 


I have an EIDL loan under the COVID EIDL program.  Am I eligible for wildfire assistance also? 

Yes.  Any affected business, homeowner or renter is eligible for disaster assistance as a result of damages or losses from the wildfires.   


 What Types of Disaster Loans are Available?  

Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.  

Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.  

Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.  


What are the interest rates? 

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery. An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere. Interest rates are fixed for the term of the loan. The interest rates applicable for this disaster are: 

What are Loan Terms?  

The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay 


What are the Loan Amount Limits?  

Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.  

Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.  

Business Loan Ceiling – The $2,000,000 statutory limit for business loans applies to the combination of physical, economic injury, mitigation and refinancing, and applies to all disaster loans to a business and its affiliates for each disaster. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.  

Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair or replace personal property. Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.  


What Restrictions are there on Loan Eligibility?  

Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.  

Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited.  

Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.  


Is There Help with Funding Mitigation Improvements?  

If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, etc. Mitigation loan money would be in addition to the amount of the approved loan, but may not exceed 20 percent of total amount of physical damage to real property, including leasehold improvements, and personal property as verified by SBA to a maximum of $200,000 for home loans. It is not necessary for the description of improvements and cost estimates to be submitted with the application. SBA approval of the mitigating measures will be required before any loan increase.  


Is There Help Available for Refinancing?  

SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property or 50% or more of the value of the structure), and (3) intends to repair the damage.  

Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment, up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment.  

Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the loan for real estate repair or replacement.  


What if I Decide to Relocate?  

You may use your SBA disaster loan to relocate. The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily. If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.  


Are There Insurance Requirements for Loans?  

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available. 


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Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA or HSU Sponsored Programs Foundation.