Loan for Businesses Affected by the Los Angeles Civil Unrest
- Jul 18
- 2 min read
Updated: Jul 25
If your business was affected by the civil unrest that occurred in Los Angeles between June 6 and June 18,2025, the Small Business Administration (SBA) has opened the opportunity to apply for an Economic Injury Disaster Loan (EIDL).
This loan is designed to support businesses that, due to the direct impact of these events, are unable to meet their regular financial obligations, such as rent, utilities, payroll, or debt payments.
What is considered substantial economic injury?
Its important to note that a simple drop in sales does not qualify as substantial economic injury. To be eligible,the business must show that it cannot cover its fixed expenses as a direct result of the disaster.
Eligibility Requirements; To qualify, the business must meet the following criteria:
Location:
It must be located in a declared disaster area, which includes:
Primary county: Los Angeles
Contiguous eligible counties: Ventura, Kern, Orange, and San Bernardino
Direct impact:
The business must have been directly affected by the unrest
Financial impact:
It must demonstrate that it cannot cover normal operating expenses, such as rent, payroll, utilities, or debt payments
What does the EIDL loan cover?
Funds can be used for:
Working capital
Payroll
Rent
Utilities
Health benefits
Fixed debt payments
Funds cannot be used for:
Purchasing equiment or property
Expanding facilities
Repairing physical damages
Refinancing debts
Paying bonuses, dividends, or loans to owners or officers
Loan Terms:
First payment deferred for 12 months
No interest accrues during the first year
Maximum interest rate: 4%
Repayment term: up to 30 years, depending on business capacity
No prepayment penalties
Collateral required only for loans over $50,000
Application Deadline:
The deadline to submit the application is March 27, 2026.
Need help with the appliation?
At ISTAXPro Accounting Firm, Inc., we can assist you.
Contact us at (818) 299-3535 or email us at team@istaxpro.com
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