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Committee presses SBA on Los Angeles wildfire disbursements and outreach for non‑English speakers
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Summary
Members sought an update on SBA lending and disbursements after Los Angeles wildfires; the agency reported about $3.7 billion approved, $785 million disbursed, and described outreach, translation services, and permit delays that limit borrowers' willingness to draw funds.
Several members asked for a status report on SBA’s response to the January wildfires in Los Angeles and on how the agency is reaching diverse and multilingual communities.
Chris Stallings told the committee the agency had approved roughly $3.7 billion in loans tied to the disaster and had disbursed about $785 million, with approximately $415 million of that going to homeowners. He said 1,887 homes were fully dispersed (meaning homeowners had received their full requested amounts) and that the agency conducted windshield surveys and community events to reach survivors.
Stallings and members discussed why disbursements can lag approvals. Stallings said some approved borrowers defer drawing funds — “why take money if I can't rebuild?” — because local permitting delays make immediate rebuilding infeasible, and SBA offers a 12‑month grace period after first disbursement so borrowers can time draws to construction timelines.
Members also raised language access concerns after reports that the SBA removed Spanish language pages from its site. Stallings described an on‑the‑ground, bespoke approach: bringing translators to affected communities and tailoring materials for local needs rather than relying on a limited set of pre‑translated web pages.
Lawmakers urged continued outreach through SBA resource partners (SBDCs, Women’s Business Centers) and asked for follow‑up on community outreach metrics and timelines for additional disbursements.
