The U.S. Small Business Administration (SBA) is offering low-interest Economic Injury Disaster Loans (EIDL) of up to $2 million to small businesses in the Los Angeles area affected by protests against indiscriminate arrests of undocumented immigrants.
Eligible businesses include those that suffered damage from the protests between June 6 and June 18. Applications are open until March 27, 2026.
EIDL is a loan program designed to help small businesses and organizations that could not operate normally due to disasters. The funds can cover operating costs such as payroll, rent, utilities, fixed debts, and employee health insurance premiums. They can also be used to repair facilities or equipment if insurance coverage or Federal Emergency Management Agency (FEMA) assistance is insufficient.
However, the loans cannot be used for facility expansions, fixed asset purchases, debt refinancing, or shareholder and executive dividends.
Applicants can include small businesses, small agricultural cooperatives, and nonprofit organizations. The loans have a maximum limit of $2 million with repayment terms of up to 30 years. The first payment is deferred for 12 months without accruing interest, after which the interest rate is set at 4% or less.
For loans between $50,000 and $200,000, if other collateral is available, the applicant’s home is excluded from collateral requirements.
Applications can be submitted on the SBA website (sba.gov/disaster).
Meanwhile, the protests caused an estimated $1 billion in economic damage in Downtown LA, due to curfews reducing sales, as well as widespread looting and property destruction.
BY YOONJAE JUNG [jung.yoonjae@koreadaily.com]
