Barger Urges Eaton Fire Survivors to Use Final SBA Disaster Loan Extension

Supervisor Kathryn Barger at a meeting (Photo – LA County)

Los Angeles County Supervisor Kathryn Barger is urging residents and small business owners affected by the Eaton Fire to take advantage of the U.S. Small Business Administration’s (SBA) final extension of disaster loan disbursement deadlines, giving eligible borrowers additional time to access approved recovery funds as rebuilding efforts continue.

By News Desk

Under the extension, borrowers approved for SBA Home Physical Disaster Loans and Business Physical Disaster Loans will now have 24 months from the date of their loan authorization agreement to draw down their approved loan funds. The SBA said the extension recognizes that many wildfire survivors continue to face rebuilding delays related to insurance claims and other recovery challenges.

“It’s encouraging that U.S. EPA Administrator Lee Zeldin has recognized the significant progress being made to accelerate permitting and rebuilding in Los Angeles County,” Barger said. “While that progress is making a real difference, many wildfire survivors continue to face challenges beyond their control. This SBA extension provides much-needed flexibility, giving families and small businesses additional time to access the recovery funding they’ve already been approved to receive.”

Barger encouraged all eligible borrowers to take advantage of the extension as they continue rebuilding their homes, businesses and lives.

The supervisor said she recently spoke with SBA Administrator Kelly Loeffler about issues affecting wildfire recovery, including the loan extension and financing challenges facing many homeowners.

According to Barger, some homeowners face funding gaps during reconstruction because federal duplication-of-benefits requirements can prevent the SBA from releasing portions of an approved disaster loan until insurance proceeds are finalized. At the same time, some insurance companies do not release the full amount needed for rebuilding until a home receives a certificate of occupancy, leaving families without access to approved funds during construction.

“I appreciate Administrator Loeffler’s willingness to examine this issue and work toward a solution so survivors can access the financing they need to continue rebuilding,” Barger said.

The SBA has approved more than $3.4 billion in disaster assistance for nearly 13,000 Los Angeles-area borrowers impacted by the January 2025 wildfires. The agency cited ongoing rebuilding delays as the reason for providing the final extension.

Eligible borrowers with questions about their disaster loans or the disbursement process can contact the SBA Disaster Assistance Customer Service Center at (800) 659-2955 or by email at disastercustomerservice@sba.gov.

Barger said she remains committed to connecting wildfire survivors with available recovery resources and encouraging eligible residents and business owners to take advantage of available assistance as rebuilding continues in Altadena and surrounding communities.