We understand that the recent wildfires in Los Angeles have deeply affected many in our community, including business owners facing unprecedented challenges. Below are crucial resources from the SBA, FEMA, the U.S. Treasury, and the State of California to support businesses during this difficult period. Our aim is to provide practical assistance to help you move forward. We will provide additional information as it develops.
SBA
The U.S. Small Business Administration (SBA) offers low-interest federal disaster loans to businesses and private nonprofit organizations in Southern California affected by the wildfires and straight-line winds that began on January 7, 2025.
Key Details:
- Eligible Areas: Los Angeles County and contiguous counties, including Kern, Orange, San Bernardino, and Ventura.
- Loan Types and Amounts:
- Business Physical Disaster Loans: Up to $2 million for businesses of all sizes and private nonprofits to repair or replace damaged real estate, machinery, equipment, inventory, and other business assets.
- Economic Injury Disaster Loans (EIDLs): Available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofits to assist with working capital needs caused by the disaster, even if there is no physical damage
- Interest Rates and Terms:
- As low as 4% for small businesses, 3.625% for private nonprofits
- Repayment terms up to 30 years.
- Interest accrual and payments are deferred until 12 months from the date of the first loan disbursement.
- Application Deadlines:
- Physical Property Damage: March 10, 2025.
- Economic Injury: October 8, 2025.
How to Apply:
- Online: Visit the SBA’s Disaster Loan Assistance portal at sba.gov/disaster to submit an application.
- In-Person Assistance: The SBA has opened Disaster Loan Outreach Centers (DLOCs) in Los Angeles and Ventura counties to provide personalized assistance with the application process.Los Angeles County DLOC:
- Location: Pasadena City College Community Education Center (PCC CEC), Multi-Purpose Room, 3035 E. Foothill Blvd., Pasadena, CA 91107.
- Hours: Monday to Friday, 9 a.m. – 6 p.m.; Saturday, 9 a.m. – 4 p.m.
- Note: Closed on Monday, January 20, in observance of the MLK holiday.
Ventura County DLOC:
- Location: Ventura County Community Foundation (VCCF), Economic Development Collaborative, 4001 Mission Oaks Blvd., Ste. A-1, Camarillo, CA 93012.
- Hours: Monday to Friday, 8 a.m. – 5 p.m.
- Note: Closed on Monday, January 20, in observance of the MLK holiday.
- By Phone: Contact the SBA’s Customer Service Center at (800) 659-2955 for more information or to request a paper application.
- Email: Send inquiries to disastercustomerservice@sba.gov.
U.S.Treasury and IRS
The U.S. Department of the Treasury, through the Internal Revenue Service (IRS), has announced tax relief measures for businesses affected by the recent wildfires in Los Angeles County.
Tax Filing and Payment Extensions:
- Extended Deadlines: Businesses in Los Angeles County now have until October 15, 2025, to file various federal tax returns and make tax payments that were originally due during the period starting January 7, 2025.
- Payroll and Excise Tax Deposits: Penalties for failing to make payroll and excise tax deposits due between January 7, 2025, and January 22, 2025, will be abated if the deposits are made by January 22, 2025.
Casualty Loss Deductions:
- Affected businesses can opt to claim disaster-related casualty losses on their federal income tax return for either the year the event occurred (2025) or the prior year (2024). This provides flexibility in determining the most beneficial tax outcome.
Access to Prior Tax Records:
- The IRS will waive fees and expedite requests for copies of previously filed tax returns for affected businesses. When submitting Form 4506, businesses should include the assigned FEMA declaration number (4856-DR) in bold letters at the top of the form.
Retirement Plan Relief:
- The IRS has provided relief for retirement plan participants impacted by the wildfires, including postponed deadlines for 2024 retirement contributions and penalty-free hardship withdrawals for affected participants.
- The Internal Revenue Service today reminded disaster-area taxpayers who received extensions to file their 2023 returns that, depending upon their location, their returns are due by Feb. 3 or May 1, 2025.
Additional Information:
- For comprehensive details on the available tax relief and guidance on claiming disaster-related losses, businesses should refer to the IRS’s official announcements and publications related to disaster assistance.
Businesses are encouraged to consult with their tax professionals to fully understand the implications of these relief measures and to ensure all necessary forms and claims are accurately completed.
State of California
The State of California has implemented several support measures for businesses affected by the recent Los Angeles wildfires:
Tax Relief Measures:
- Sales and Use Tax Filing Extension: The California Department of Tax and Fee Administration (CDTFA) has extended the January 31, 2025, Sales and Use tax filing deadline for Los Angeles County taxpayers to April 30, 2025.
- Income Tax Postponement: Taxpayers in Los Angeles County have been granted a postponement until October 15, 2025, to file California tax returns for 2024 income and make any tax payments that would have been due between January 7, 2025, and October 15, 2025.
Additional Resources:
- Employment Development Department (EDD): The EDD offers various services to businesses affected by disasters, including assistance with unemployment insurance claims and workforce resources.
- California Office of Emergency Services (Cal OES): Cal OES provides guidance and resources for disaster recovery, including support for businesses navigating the aftermath of wildfires.
FEMA
- FEMA’s Public Assistance Program provides grants to state, local, tribal, and territorial governments, as well as certain private non-profit organizations, to assist with response and recovery efforts. While primarily aimed at governmental entities, some private non-profit organizations that provide essential services may also be eligible.
- In addition to helping individuals and families recover, FEMA is supporting the state and local governments by funding 100 percent of the cost of debris removal and lifesaving and life sustaining activities – including fire suppression efforts — for 180 days.
How can I help?
Those looking to volunteer their time or donate money to support those impacted by the Los Angeles fires should rely on trusted sources and beware of scams. Here are two trusted non-profit organizations that we recommend.
The material contained in this document has been authored or gathered for informational purposes only. This document is not intended to be and is not considered to be legal or tax advice. Transmission of this document is not for the purpose of providing guidance and does not create a client relationship. Legal advice of any nature should be sought from legal counsel and tax advice should be obtained from a tax advisor.