Small businesses affected by Boyle Heights warehouse disaster can apply for federal assistance

California Gov. Gavin Newsom on Tuesday announced small businesses affected by the Boyle Heights warehouse fire may apply for low-interest federal disaster loans.

The U.S. Small Business Administration approved California's request for a disaster declaration, making loans available to eligible small businesses, private nonprofit organizations, including faith-based organizations, that experienced financial losses directly related to the fire.

"The Boyle Heights community has endured tremendous disruption, and we moved quickly to bring every available resource to bear. These loans will help local businesses and nonprofits meet essential costs, retain workers, and move forward as the community recovers." Newsom said in a news release.

Funds are available even when a business or nonprofit did not sustain physical damage. and may be used to pay fixed debts, payroll, accounts payable, and other expenses that could not be paid because of the disaster.

Loans are available for up to $2 million, with interest rates as low as 4% for businesses and 3.625% for private nonprofits, and terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months after the first loan disbursement.

Businesses and nonprofits may apply online at sba.gov/disaster, call the SBA Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov.