SBA Issues Guidance Allowing California Wildfire Survivors to Bypass Permit Delays
Less than 25% of $3.2 billion in SBA disaster loans has been accessed due to permitting delays, now bypassed by new regulations allowing builder self-certification.
- Today, the U.S. Small Business Administration published guidance allowing builders to self-certify compliance when borrowers have waited 60 or more days for permits, under President Donald J. Trump’s Executive Order.
- With billions approved in federal aid last year, fewer than 3,000 permits have been issued in Los Angeles, California, despite over 16,000 homes destroyed in 2025 Eaton and Palisades wildfires.
- The process requires two short documents and then amends the Loan Authorization and Agreement, replacing permit requirements; it is authorized under 13 CFR 123.800 et seq. with civil and criminal penalties for false statements.
- To protect access, the SBA extended loan disbursement deadlines through June 30, 2026, and said it will publish implementing regulations in the coming days to help disaster loan borrowers use approved funds within six months.
- The administration blamed state and city leaders, saying Governor Gavin Newsom and Mayor Karen Bass failed to clear permitting backlogs as fewer than ten homes have been rebuilt, and officials warn this bypass could apply to future local jurisdictions.
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President Trump Announces He Is Federally PRE-EMPTING California Law!
President Trump just announced that he is officially pre-empting and superseding California law. After California has proven unwilling or unable to issue permits to rebuild from the Palisades Fires, President Trump has had enough and he is putting Lee Zeldin in charge of issuing the permits and federally overriding all ...
Trump bypasses California's 'nightmare' bureaucracy to unlock $3.2B for wildfire survivors
Trump administration allows California wildfire survivors to bypass local permitting delays through new SBA guidance, enabling access to $3.2 billion in disaster relief funds.
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