After Record Trump Aid to L.A., SBA Administrator Loeffler Slams Newsom and Bass for Wildfire Recovery Failures

PACIFIC PALISADES - Yesterday, U.S. Small Business Administration (SBA) Administrator Kelly Loeffler slammed California Governor Gavin Newsom and Los Angeles Mayor Karen Bass for abandoning wildfire victims to bureaucracy, leaving families and small businesses unable to rebuild eight months after the Palisades and Eaton wildfires devastated the state. While surveying a disaster site in the Palisades, Loeffler underscored the unprecedented federal aid delivered under the Trump Administration - and condemned the red tape that has kept entire communities buried in the rubble.

Loeffler highlighted the crisis alongside Spencer Pratt, a local resident, father of two, and TV personality, whose family and parents lost their home in the fires. She was also joined by Luke Melchior, CEO of a local construction company. The trio toured the site of a destroyed property whose rebuild permit has been pending approval by local authorities for nearly five months.

"The Trump Administration has delivered a historic response to support California wildfire victims, with SBA alone approving $3.2 billion in relief - representing 73 percent of all disaster aid approved by the agency this year. Yet, eight months later, families and small businesses who lost everything are still standing in the rubble - because instead of clearing the way, Governor Newsom and Mayor Bass have trapped victims in bureaucracy," said Administrator Loeffler. "This Administration has stood with this community since Day One, from FEMA, the EPA, Army Corps of Engineers, HUD and the SBA - after President Trump met with local leaders his first week in office. The only thing standing in the way now are the same failed state and local leaders who only deliver lip service instead of relief. They must stop making excuses, clear the backlog of permits, and deliver on their promises to give these communities what they need to rebuild - immediately."

The SBA has approved a massive $3.2 billion in disaster relief for California wildfire victims, accounting for over 70% of all disaster relief approved by the agency in FY2025. To date, the agency has disbursed nearly $640 million to over 8,000 California wildfire victims.

Despite this robust response from the federal government, families and small businesses have been unable to rebuild their homes and storefronts because of red tape imposed by California bureaucrats. The Palisades and Eaton wildfires destroyed an estimated 16,000 structures in January 2025, but as of today, less than 500 rebuild permits have been issued in the City of Los Angeles - along with another 300 in Los Angeles County.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit https://www.sba.gov.