SBA Offers Disaster Assistance to Residents Affected by Station Fire

Washington, DC – The Small Business Administration (SBA) announced late yesterday that residents in Los Angeles County and four other counties will be eligible for low-interest disaster loans to help them rebuild after the devastating Station Fire. Senators Barbara Boxer and Dianne Feinstein (both D-CA) sent a letter to the agency last week supporting Governor Arnold Schwarzenegger’s request for disaster assistance for this area.

As the largest fire in Los Angeles County history, the Station Fire has already burned more than 160,000 acres and, as of Monday, the fire had destroyed 89 homes and 26 commercial properties.

Low-interest disaster loans from the SBA are now available to homeowners, renters, businesses of all sizes and private, non-profit organizations to help repair or replace residential and business losses.

Homeowners may borrow up to $200,000 to repair or replace their primary residence, and homeowners and renters may borrow up to $40,000 to replace personal property. Businesses of any size and private, non-profit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory and other assets.

Interest rates can be as low as 2.75 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. SBA determines loan amounts and terms based on each applicant’s financial condition.

SBA’s disaster declaration covers Los Angeles County as well as Kern, Orange, San Bernardino and Ventura Counties.

A copy of the letter from Senators Boxer and Feinstein to the SBA follows:

September 11, 2009

The Honorable Karen Mills
Administrator, U.S. Small Business Administration
409 3rd Street, S.W. Suite 7000
Washington, DC 20024-3212

Dear Administrator Mills:

We write in support of Governor Arnold Schwarzenegger’s request for a Small Business Administration Disaster Declaration for Los Angeles County. As you know, the recent Station Fire has burned over 160,000 acres and destroyed dozens of homes and commercial properties in the Los Angeles area.

Damage surveys conducted by the California Emergency Management Agency and the U.S. Small Business Administration (SBA) on September 10, 2009, determined that 66 homes and five businesses have uninsured losses of at least 40 percent of their value, thus meeting the SBA minimum criteria for a disaster declaration.

The Station Fire is the largest fire in Los Angeles County history, as well as one of the largest in the state’s history. Due to the devastation caused as a result of these fires, we join Governor Schwarzenegger in requesting that you declare Los Angeles County a disaster area. Assistance in the form of disaster loans will be immensely helpful to the residents and their businesses in this time of great need.

We appreciate the support that the SBA has provided to California in times such as these and thank you in advance for your consideration.

Sincerely,

Barbara Boxer
United States Senator

Dianne Feinstein
United States Senator

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