Small business loans available for businesses impacted by Garden Grove chemical crisis

June 18, 2026 - 07:45

Federal disaster recovery funds are now available to small businesses affected by the chemical crisis in Garden Grove. The U.S. Small Business Administration has approved low-interest loans for companies that suffered economic injury or physical damage due to the incident. Business owners can apply for up to $2 million to cover working capital needs, repair costs, and replacement of inventory or equipment.

The crisis, which began last month after a chemical leak at a local industrial facility, forced several businesses to shut down temporarily. Many reported lost revenue and ongoing cleanup expenses. The loans aim to bridge the gap until normal operations resume. Interest rates are set at 4 percent for businesses without credit elsewhere and 8 percent for those with alternative financing options. Repayment terms extend up to 30 years, depending on the borrower's ability to pay.

Local officials urged eligible businesses to apply quickly, as funds are limited. The SBA has set up a temporary office in Garden Grove to assist with applications. Business owners must provide documentation of losses, including tax returns and financial statements. The deadline for applications is 60 days from the official declaration date. This program does not cover residential properties or large corporations, focusing solely on small enterprises directly impacted by the chemical release.