Small Business Administration offers grace period to business owners affected by wildfires

The big deadline for applying for several forms of fire assistance just passed, but the Small Business Administration is still offering business owners affected by the wildfire options for loans.

A lot of twisted metal and charred rubble used to be a warehouse for a thriving Altadena clothing company, which is now looking for help moving forward.

"You could see the orange light, the fire in the hills and as we got close to the building, we saw part of the building burning," said Sebu Chatoyan, a business owner.

Sebu and his wife, Marala Chatoyan, started "24/7 comfort apparel" more than 30 years ago. She designs the clothes being shipped out in thousands of packages every week. The business' staff of 20 is back working in their still standing headquarters, and the Chatoyans are looking for funds to rebuild the warehouse.

"It's going to be a very expensive process, we were told SBA would be willing to help out in regards to giving us a loan at a very good rate, so we've applied and are waiting to see if we are going to be qualified," Sebu said.

The couple quickly discovered they weren't eligible for FEMA aid or clearing by the U.S. Army Corps of Engineers because they're commercial. The Chatoyans said the insurance payments they desperately need have been repeatedly delayed.

"It's been very aggravating because we are thinking that you're questioning us, and we didn't do anything wrong. It was a natural disaster," Marala said.

The SBA wants other struggling businesses and homeowners to know they can still apply for needed low interest loans. While the official deadline of March 31, just passed, unlike FEMA they've got a 60-day grace period. The SBA also said it's fine if business owners don't yet know exactly how much they'll need. 

"The program allows increases in loans up to two years from the date of a loan authorization, whether that's a business, homeowner, or nonprofit," said Corey Williams, with the SBA.

Small businesses and nonprofits can also apply for loans that cover economic injuries. The deadline for that isn't until Oct. 8.  The loans will need to be repaid but under favorable terms, the SBA said.

"Business loan interest rates as low as 4%, no payment for an entire year, no interest accrual for the entire year," Williams said.

The Chatoyans are still going through the final application stages but are hopeful. They said their business needs this lifeline.

"The only entity that's helping us is the SBA," Sebu said.