SBA opens low-interest disaster loans for Chelan Hills Fire, drought losses

WENATCHEE — Businesses, nonprofits, homeowners and renters hurt by the Chelan Hills Fire can now apply for low-interest federal disaster loans, the U.S. Small Business Administration announced Sept. 28.

The SBA issued the disaster declaration in response to a Sept. 18 request from Gov. Bob Ferguson. It covers losses from the fire, which burned July 4-10. Chelan, Douglas, Grant, Kittitas and Okanogan counties are included.

Businesses and private nonprofits may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory and other business assets. Homeowners may borrow up to $500,000 to repair or replace a primary residence. Homeowners and renters may borrow up to $100,000 to replace personal property such as clothing, furniture, cars and appliances.

Applicants may also qualify for up to 20% more than their verified physical damage to pay for mitigation, such as strengthening structures against high winds, installing wind-rated garage doors or building a safe room.

Economic Injury Disaster Loans provide working capital to small businesses, small agricultural cooperatives and private nonprofits, including faith-based groups, that lost income because of the disaster. They are available even to organizations with no physical damage and can cover fixed debts, payroll, accounts payable and other bills. The SBA said it cannot lend to agricultural producers, farmers or ranchers, except aquaculture businesses.

Interest rates start at 4% for businesses, 3.625% for nonprofits and 2.875% for homeowners and renters, with terms of up to 30 years. No interest accrues and no payments are due until 12 months after the first disbursement.

The deadline for physical damage applications is Nov. 23. Economic injury applications are due June 22, 2027.

Separately, the SBA said small businesses and private nonprofits hurt by drought that began July 14 may apply for economic injury loans under a second declaration. That declaration lists Chelan and Spokane counties as primary counties, with eligible counties including Chelan, Douglas, Kittitas, Okanogan, Lincoln, Stevens and others. Drought loans go up to $2 million, and the application deadline is May 17, 2027.

To apply, visit sba.gov/disaster, call the SBA's National Support Network Center at 866-722-4357 (866-SBA-HELP) or email disastercustomerservice@sba.gov. People who are deaf, hard of hearing or have a speech disability can dial 711 for relay services.