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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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Brunswicktimes Gazette broke the news in Lawrenceville, United States on Thursday, January 29, 2026.
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