SBA Approves Low-Interest Disaster Loans for Shasta County Flood Victims After 2025 Holiday Storms
- Rex Ballard
- 1 day ago
- 3 min read
In the wake of devastating floods that struck Shasta County during the late December 2025 storms, the U.S. Small Business Administration (SBA) has issued a disaster declaration, unlocking low-interest loans for affected residents, businesses, and nonprofits. This federal assistance aims to help rebuild lives and livelihoods battered by heavy rains, flash flooding, and infrastructure damage across the North State.
The declaration, announced on February 2, 2026, covers Shasta County along with other California counties including Inyo, Kern, Lassen, Los Angeles, Modoc, Orange, Plumas, Riverside, San Bernardino, Siskiyou, Tehama, and Trinity, as well as parts of Arizona and Nevada. It comes in response to a request from Gov. Gavin Newsom's office, recognizing the widespread impacts of the "2025 Late December Storm" that raged from December 16 to 26.
The Storm's Fury: A Holiday Nightmare
The late December atmospheric river event brought relentless rainfall to Northern California, saturating soils already primed by earlier storms. In Shasta County, areas like Redding experienced severe flash flooding, road closures, and property damage. Local officials reported at least one fatality linked to the floods, with rivers and creeks overflowing, turning streets into muddy torrents.
Meteorologists had warned of the impending danger weeks in advance. As early as December 12, forecasts highlighted the potential for heavy precipitation reminiscent of historic events in 2004 and 2010. By December 19, predictions escalated, noting risks of 60-80 mph winds and up to 10 inches of rain in vulnerable areas. The storm's intensity peaked around Christmas, with excessive rainfall outlooks reaching the highest "particularly dangerous" levels for flash flooding.
Residents in low-lying areas faced inundated homes, downed trees, and power outages, while emergency responders conducted water rescues amid rising waters.
Shasta County Sheriff declared a local state of emergency on December 22, ratified by the Board of Supervisors on December 29. Gov. Newsom followed with a statewide proclamation on December 24, mobilizing resources to address threats of flooding, landslides, and debris flows.
What the Declaration Means for Shasta County
Unlike a full FEMA major disaster declaration—which has not been issued for this event—the SBA's action focuses on economic recovery through loans rather than grants. Eligible applicants include homeowners, renters, businesses of all sizes, and private nonprofits, even faith-based organizations.
Loan options cover:
Physical Damage Loans: Up to $500,000 for homeowners to repair or replace primary residences; $100,000 for personal property like furniture and vehicles; and $2 million for businesses and nonprofits to fix real estate, machinery, and inventory.
Economic Injury Disaster Loans (EIDL): Working capital for small businesses and nonprofits to cover ongoing expenses like payroll and bills, even without physical damage.
Interest rates start as low as 2.875% for homeowners and renters, 3.625% for nonprofits, and 4% for businesses, with terms up to 30 years and payments deferred for up to 12 months.
Deadlines are strict: Applications for physical damage must be submitted by April 6, 2026, while EIDL applications are due November 3, 2026.
Local Support: Disaster Loan Outreach Center Opens in Redding
To streamline the process, the City of Redding partnered with the SBA to open a Disaster Loan Outreach Center at City Hall (777 Cypress Ave.) on February 6, 2026. The center operates weekdays from 8 a.m. to 5 p.m., offering in-person assistance, including help with applications and eligibility questions. Walk-ins are welcome, but appointments can be scheduled at appointment.sba.gov. Note: The center is closed on February 16 for Presidents' Day.
"This is a critical resource for our community," said a City of Redding spokesperson in a recent announcement. "We're here to support those impacted by the flooding in applying for the help they need."
For those unable to visit, applications can be filed online at sba.gov/disaster, by calling (800) 659-2955, or emailing disastercustomerservice@sba.gov. Shasta County residents are also encouraged to report damages through the county's online portal at ShastaReady.org for ongoing assessments.
Shasta County officials urge affected individuals to act quickly. For more information, visit shastacounty.gov/sheriff/page/flood-information-and-resources or the SBA website. As the North State rebuilds, this declaration marks a step toward recovery, reminding us of the unpredictable power of nature—and the importance of community support.
