WASHINGTON, D.C. — One year after catastrophic wildfires tore through Los Angeles County, the federal government is once again stepping in to keep thousands of displaced Californians from losing their chance to rebuild.
The U.S. Small Business Administration announced Wednesday that it is extending disaster loan disbursement deadlines through June 30, 2026, giving homeowners and business owners more time to access billions of dollars in approved federal aid that has gone largely untouched due to local permitting delays.
The move comes as survivors mark the one-year anniversary of the wildfires, which destroyed an estimated 16,000 structures across the city and county of Los Angeles. Despite more than $3.2 billion in SBA disaster assistance approved — more than half of all SBA disaster funding nationwide in fiscal year 2025 — only a fraction of residents have been able to begin rebuilding.
“The wildfire recovery effort in California has been a national disgrace under the leadership of Governor Gavin Newsom and Mayor Karen Bass,” said SBA Administrator Kelly Loeffler. “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.”
Under normal rules, disaster survivors have six months from the date their SBA loan is approved to fully draw down the funds. The agency first extended that deadline in October after concluding that “extraordinary” permitting delays and paperwork backlogs were preventing borrowers from accessing the money they had already been awarded.
State and local officials have touted California’s disaster response as historic, but the numbers tell a different story. Only about 2,600 rebuild permits have been issued across Los Angeles City and County — meaning fewer than 15 percent of destroyed homes have been cleared to begin reconstruction.
Even some of the progress touted by city leaders has unraveled. Mayor Karen Bass celebrated the first rebuilt home in November, but subsequent media reports showed the contractor had secured its permit before the fires, as part of a planned demolition. As of Wednesday, just seven structures have actually been completed in the year since the disaster.
The SBA said the deadline extension is meant to protect families and small businesses who are trapped between federal aid and local red tape, unable to move forward until permits are granted.
Borrowers seeking help can contact the SBA’s Disaster Assistance Customer Service Center at (800) 659-2955 or by email at disastercustomerservice@sba.gov.
With entire neighborhoods still reduced to ash and permits stuck in bureaucratic limbo, the federal government is now buying victims more time — as pressure mounts on California’s leaders to finally clear the way for rebuilding to begin.
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