California: Governor Newsom secures federal disaster assistance for small businesses impacted by Boyle Heights warehouse fire

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Aug 18, 2026

Governor Newsom secures federal disaster assistance for small businesses impacted by Boyle Heights warehouse fire

What you need to know: Governor Gavin Newsom today announced that low-interest federal disaster loans are now available to help small businesses and private nonprofit organizations recover from economic losses caused by the 2026 Los Palos incident, also known as the Boyle Heights warehouse fire, in Los Angeles.

SACRAMENTO – Governor Gavin Newsom today announced that the U.S. Small Business Administration (SBA) has approved California's request for a disaster declaration, making low-interest federal loans available to eligible small businesses and private nonprofit organizations impacted by the Boyle Heights warehouse fire in June.

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.

Governor Gavin Newsom

The SBA issued the disaster declaration following an Aug. 10 request from California Governor's Office of Emergency Services Director Caroline Thomas Jacobs. The declaration covers Kern, Los Angeles, Orange, San Bernardino, and Ventura counties.

"Recovery depends on getting practical assistance to communities as quickly as possible. Cal OES requested this declaration so affected businesses and nonprofits can access additional support to meet essential costs and continue serving the Boyle Heights community," said Cal OES Director Caroline Thomas Jacobs. "We will continue working with Los Angeles and our federal partners to connect eligible organizations with the resources they need to recover."

Help for businesses and nonprofits

Under the declaration, the SBA's Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, and private nonprofit organizations, including faith-based organizations, that experienced financial losses directly related to the fire. Agricultural producers, farmers, and ranchers are not eligible, except for aquaculture enterprises.

Economic Injury Disaster Loans provide working capital and are available even when a business or nonprofit did not sustain physical damage. Funds 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. The SBA determines eligibility and sets loan amounts and terms based on each applicant's financial condition.

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Get help today

Starting now, SBA customer service representatives will be available at two Los Angeles-area Business Recovery Centers to answer questions and assist with applications. Walk-ins are welcome. Appointments may be scheduled at appointment.sba.gov. The deadline to apply for an Economic Injury Disaster Loan is May 14, 2027.

East LA/Boyle Heights Business Source Center
1780 E. First St., Los Angeles, CA 90033
Opens Tuesday, Aug. 18, at 11 a.m.
Monday–Friday, 8 a.m.–5 p.m.; Saturday, 9 a.m.–2 p.m.

East LA Entrepreneur Center (Centro Maravilla)
4716 E. Cesar Chavez Ave., Building B, Los Angeles, CA 90022
Opens Tuesday, Aug. 18, at 11 a.m.
Monday–Friday, 8 a.m.–4:30 p.m.

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. People who are deaf, hard of hearing, or have a speech disability may dial 7-1-1 to access telecommunications relay services.

California's all-in response to the Boyle Heights fire

Governor Newsom moved quickly to support the locally led emergency response effort by proclaiming a state of emergency for Los Angeles County on June 20, activating state resources and streamlining support for response and recovery. Since the fire, the state has urgently responded to every request from the City of Los Angeles and Los Angeles County to accelerate cleanup, protect public health, and support residents, workers, and businesses.

• Pre-positioned 5.5 million N95 masks, air purifiers, water, and public health resources to help protect residents from smoke and poor air quality.
• Deployed Employment Development Department staff to city recovery centers to help affected workers apply for unemployment benefits and connect with job-placement services.
• Expanded debris-removal capacity by increasing landfill operating hours and deploying CalRecycle technical experts to support safe debris handling, disposal, and hazardous-materials management.
• Coordinated fire and law enforcement mutual aid through Cal OES, including specialized firefighting equipment and out-of-state ladder trucks, and deployed fire-and-rescue leadership and technical experts to support local incident commanders.
• Opened state business-support operations to connect impacted employers, small businesses, and workers with available recovery assistance.
• Worked with community-based organizations to help secure and coordinate donated supplies and resources for affected residents, families, and workers.

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