Small business owners in Los Angeles County have reason to pay attention as the U.S. Small Business Administration (SBA) has announced an extension of disaster relief deadlines one year after the devastating wildfires. With many still struggling to rebuild due to persistent state and local permitting delays, the SBA’s action allows impacted homeowners and business owners to access previously approved loan funds until June 30, 2026.
This development is particularly significant in the wake of continued bureaucratic hurdles that have left thousands unable to commence rebuilding efforts. Since the wildfires destroyed an estimated 16,000 structures, only about 2,600 rebuild permits have been issued in the area. This stark statistic underscores the difficulties small business owners are facing when looking to recover and thrive after the disaster.
SBA Administrator Kelly Loeffler criticized the state and local leadership, stating, “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.” The agency has approved over $3.2 billion in disaster funding for the county, which accounts for more than half of all disaster assistance provided by the SBA in the fiscal year 2025.
With the typical disbursement deadline set at six months from the date of loan approval, the extensions provide a crucial lifeline. This extension follows an earlier move in October 2025 when the SBA initially recognized that “extraordinary” permitting delays were obstructing borrowers from accessing their funds.
For small business owners, this means they have additional time to resolve permitting issues while also leveraging financial support from the SBA to get back on their feet. Access to funds can be pivotal in purchasing equipment, hiring employees, or making necessary repairs to their premises.
However, business owners should remain informed about the practical implications of these extended deadlines. With the ongoing challenges surrounding local permitting processes, it may take additional time before funds can effectively be utilized. While state officials may characterize their responses as “historic,” many small business owners will feel the weight of the still-crippled recovery efforts.
For instance, while Mayor Karen Bass celebrated the completion of the “first” rebuilt home in November 2025, it later emerged that the home had a prior-approved permit, demonstrating the complexities surrounding real recovery narratives. Currently, only seven structures have been completed since the wildfires, highlighting a slow-moving recovery process.
Small business owners wanting to take advantage of these additional extensions or who have questions about their existing loans can reach out to the SBA’s Disaster Assistance Customer Service Center at (800) 659-2955, or via email at disastercustomerservice@sba.gov. By accessing these resources, they can better navigate the challenges of the rebuilding process and understand their entitlements under the extended deadlines.
As Los Angeles County continues to grapple with the aftermath of the wildfires, small business owners are encouraged to remain proactive in seeking assistance. The tools provided by the SBA serve as valuable resources for those facing unprecedented hurdles, allowing them to turn the page on disaster and begin reconstructing their futures. Further details can be found in the original press release here.
Image via Google Gemini
This article, “SBA Extends Disaster Relief Deadline for LA Wildfire Survivors to 2026” was first published on Small Business Trends
source https://smallbiztrends.com/sba-extends-disaster-relief-deadline-for-la-wildfire-survivors-to-2026/
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