If you live in or near the affected areas in California, especially places like Butte or Shasta County, you probably already know someone who lost a home, a business, or their only source of income. And when insurance falls short (which it often does), your next question becomes, “What now?”
And for most people, the answer to that is a relief loan. These loans come in handy, whether or not you’re already considering being a part of the Eaton fire lawsuit.
In this blog, we’ll show you every loan and relief option available right now, explain how each one works, what it covers, how to apply for it, and whether or not it’s even worth it.
SBA Disaster Loans
The Small Business Administration (SBA) offers loans to individuals and families affected by federally declared disasters like the Eaton Fire. These loans come in three types, depending on your situation.
Home Disaster Loans
These are for homeowners and renters. Yes, even if you don’t own your home, you can qualify.
- You can borrow up to $500,000 to repair or replace your primary residence.
- Renters and homeowners can also apply for up to $100,000 to replace personal belongings.
- Vacation homes don’t qualify, and upgrades not required by local building codes won’t be covered.
- You get 30 years to pay, and the first payment is delayed for a full year, during which no interest accrues.
Business Physical Disaster Loans
If you run a business, regardless of the size, then this is for you. Nonprofits like local charities and churches can also apply.
- You can get up to $2 million to replace or repair business property, from buildings to equipment and inventory.
- Loans can’t be used to grow or expand your business unless code changes require it.
- Loan terms can go up to 30 years, with your first payment delayed 12 months and no interest charged during that time.
- If your business can’t get credit elsewhere, you’ll pay around 4% interest. If you can, it goes up to 8%.
Economic Injury Disaster Loans (EIDL)
This is for businesses that can’t operate normally anymore; maybe your customer base dried up, or you had to shut down for weeks.
- You can get up to $2 million, including what you might have borrowed from a physical disaster loan.
- This is working capital. It’s meant to help you pay your bills, rent, payroll, and basically survive until things normalize.
- Loans go up to 30 years, with a 1-year deferment, no interest for 12 months, and a maximum interest rate of 4%.
FEMA Assistance
FEMA isn’t a loan program. It’s a grant-based system, meaning you don’t have to pay the money back. But you must register with FEMA to get any help.
Here’s what FEMA might help you with:
- Rental assistance if your home is unsafe to live in
- Grants for home repairs, including structural repairs and essential appliances
- Lodging reimbursement if you had to stay at a hotel
- Serious Needs Assistance, which is a one-time $770 payment for emergency items like food, diapers, water, or gas
- Unemployment help for those who lost work because of the fire and don’t qualify for regular state unemployment
- Crisis counseling, legal aid, and help navigating veterans’ benefits or social security
Final Thoughts
Here’s the biggest mistake people make: they wait. They assume they can apply later if it gets worse or if it turns out they can’t do without it. But both SBA and FEMA relief options close applications occasionally.
Once the deadline passes, even if your financial situation takes a turn for the worse, you won’t be eligible. Even if you don’t use the loan or grant right away, applying now preserves your eligibility.
If you’re unsure which option is best for you, it’s okay to apply for multiple programs. Many people apply for both FEMA grants and SBA loans, so they’re not mutually exclusive. Disasters take time to recover from, but money definitely helps.
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