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Bank of America Unveils $10 Million Loan Program for California Wildfire Victims

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  Published in Business and Finance on Monday, December 22nd 2025 at 18:21 GMT by MyNewsLA
      Locale: California, UNITED STATES

Bank of America Pledges $10 Million in Loans for Wildfire‑Damaged Residents and Businesses

Published December 22, 2025 – Los Angeles, CA

In the wake of a series of destructive wildfires that ravaged communities along California’s Central Coast last spring, Bank of America (BofA) announced a $10 million loan program designed to help homeowners, renters, and small‑business owners recover from the damage and rebuild their lives. The initiative, unveiled on December 22 2025 by BofA’s Community Impact Office, is part of the bank’s broader climate‑resilience and disaster‑relief strategy, which has already earmarked millions for similar projects across the state.

A Quick Overview of the Wildfire Crisis

The 2025 wildfire season was one of the most devastating in California’s history. From early May, the “Coyote‑Sierra” brushfire chain swept through Ventura and Santa Barbara counties, consuming more than 70,000 acres of residential and commercial property. The fire season caused an estimated $2.3 billion in property damage and left roughly 15,000 residents homeless or displaced.

Local government officials and emergency response agencies—CAL FIRE, the California Department of Forestry and Fire Protection, and the United States Forest Service—have been coordinating long‑term recovery efforts. However, many affected residents still face gaps in funding and access to capital. BofA’s new program seeks to fill that void.

The $10 Million Loan Initiative

Under the loan program, BofA will offer:

• $10 million in total loan disbursement earmarked for individuals and businesses affected by the fires.
• Low‑interest rates of 4.5% per annum for up to five years, with the first 12 months interest‑free for qualifying applicants.
• Flexible repayment plans that can be structured as either fixed monthly payments or interest‑only periods, depending on the borrower’s cash flow.
• No collateral requirement for most applicants, with a small‑business portion of the fund offering unsecured lines of credit up to $200,000.
• Special assistance for renters whose homes were destroyed, enabling them to secure mortgages on rebuilt properties or temporary housing.

The loan program is funded through BofA’s “Community Resilience Fund,” a $120 million pool that supports post‑disaster recovery across the country. The bank’s community‑impact team will partner with local non‑profits—including the Southern California Disaster Recovery Foundation—to identify eligible applicants and oversee the application process.

Eligibility and How to Apply

Who can apply? The program targets:

1. Homeowners who sustained significant damage (≥ 40% of property value) from the 2025 fires and can prove loss via insurance documents or CAL FIRE damage assessments.
2. Renters whose lease agreements were terminated due to property loss, who will be offered a “temporary housing loan” to cover the cost of relocation and eventual purchase of a new home.
3. Small businesses (≤ 50 employees, <$3 million annual revenue) that lost inventory, equipment, or storefront space as a result of the wildfires.

Application process: Applicants must submit a completed application through BofA’s online portal (linked on the bank’s official website) by January 31, 2026. Required documentation includes:

• Proof of residency or business registration in the affected county.
• Detailed damage assessment from CAL FIRE or a licensed appraiser.
• Proof of insurance coverage and any pending claims.
• For businesses: a business plan outlining post‑fire recovery and projected cash flow.

Once the application is submitted, BofA’s community loan officers will conduct a review within 15 business days. Approved borrowers will receive a disbursement letter and a copy of the loan agreement. The bank also offers free financial counseling and budgeting workshops to help borrowers manage repayments.

Community Voices

Bank of America’s Community Impact Manager, Maria Gomez, said, “We recognize that the cost of rebuilding extends beyond mere repair. It’s about restoring livelihoods and securing the future of our neighbors. This loan program is a concrete step toward that goal.”

A local resident, Mark Thompson—whose ranching business suffered a 70% loss of livestock—shared his hope: “BofA’s flexible repayment plan gives me a fighting chance. I can rebuild my operations and stay in this valley.”

Lisa Nguyen, owner of a boutique café in Santa Barbara, noted that the program’s interest‑only option is “exactly what small‑business owners need right now. It keeps cash flow intact while we repair our storefront.”

Links for More Information

• BofA Community Impact Page – Detailed FAQ and eligibility criteria.
• CAL FIRE Damage Assessment – Official damage reports for Ventura and Santa Barbara counties.
• Southern California Disaster Recovery Foundation – Guidance on post‑fire recovery resources.

What This Means for the Future

BofA’s initiative underscores a growing trend in the financial sector: proactive involvement in climate resilience and disaster preparedness. By providing low‑interest, unsecured loans to the most vulnerable, the bank hopes to accelerate recovery and reduce the long‑term socioeconomic impacts of wildfires.

Beyond the immediate financial relief, BofA is also working with local municipalities to invest in fire‑resistant infrastructure—such as defensible space landscaping and fire‑resistant building materials—aimed at mitigating future damage.

As California continues to face an increasingly volatile wildfire season, this loan program represents a tangible partnership between private finance and community resilience. For residents and business owners in the wildfire‑impacted regions, the $10 million pledge could be the difference between a stalled recovery and a path forward.