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Maui wildfire survivors have just a few days left to apply for low-interest disaster assistance loans from the Small Business Administration.

The Monday deadline closes the main pipeline of federal support for fire survivors and the primary safety net for those who suffered major losses not covered by insurance.

Update: The SBA has confirmed that applications will accepted for an additional 45 days from the Dec. 11 deadline.

More than $260 million has been approved through more than 1,550 disaster assistance loans as of Dec. 1, according to the SBA. That far outweighs the $38 million in direct assistance for individuals and households from FEMA, which also stops taking applications Monday.

Two-thirds of the SBA disaster assistance loans approved – around 1,050 – went to individuals and more than 400 were approved for businesses in Maui County. Homeowners, renters and nonprofit organizations are eligible to apply for the program.

Nearly half of the SBA disaster loans — 786 worth $131.6 million — were approved between the Maui wildfires Aug. 8 and Sept. 30, the end of the 2023 federal fiscal year. By comparison, the SBA only issued a total of 35 loans in all its categories in Maui County for the entire 2022 fiscal year.

The number of loans equates to 12% of the estimated population of Lahaina at the time of the fires.

With all but the final few days of approved applications in the system, here’s the basic information on fire-related disaster loans, according to the SBA:

• The average loan for a homeowner is $322,800. (Limited to maximum $500,000 covering property loss and repair)
• The average loan for businesses is $218,200. (Limited to a maximum $2 million covering both business loss and working capital)
• The average loan for someone renting is $41,200 to cover personal losses. ($100,00 was the limit)
• The average loan to small businesses for working capital only is $94,500.

The limits for disaster-related home loans and personal loans for renters had fortuitously been doubled by the SBA a week before the fires.

Details of loans to individuals are redacted from the that tracks federal spending, but the entries for the business loans provide insight into the scope of damage and disruption caused by the fires.

They run the gamut from wedding photography and parasailing operations to boat charters, beauty salons and landscaping businesses, small engine repair shops, pizza restaurants and art galleries.

Not all applicants who have applied are successful, and some operators have told Civil Beat it made little sense to apply given how long re-building is likely to take.

The SBA does not provide data on unsuccessful applications publicly but a just-issued report on the SBA’s Disaster Loan Program by the U.S. Government Accountability Office identified the top three reasons that disaster loans were denied to the survivors of 13 hurricanes that occurred between fiscal year 2018 and fiscal year 2022.

Credit history was the main determinant.

The GAO found that the outcomes of loan applications tended to be worse among Black and low-income communities and wants the SBA to do further analysis of gaps in loan outcomes.

Some local businesses that have had disaster loans approved said they have experienced delays in accessing their funds.

Maui Surfer Girls, a located south of Lahaina, has had far fewer clients since the fire. Multiple staff members also lost their homes, owner Dustin Tester said, meaning the school is struggling to staff its operations.

Among the business losses was a 2001 Toyota Tundra as well as $10,000 of surfing gear that was onboard.

Tester applied for an SBA loan within a week of the Lahaina fire, but an initial error prolonged her application. She said she had to visit the SBA field office six times to submit more documents and clear up further confusion.

“It has been a frustrating road,” Tester said.

Approval for a $325,000 loan finally came Nov. 6, and according to  she’s been awarded an initial $67,000 disbursement. But weeks later Tester said hasn’t received a dime.

She said her last communication with the agency told her her case was with the legal department.

The SBA said it currently takes on average a week to process an application and that initial disbursements come five days after approval, but are averaging toward same-day turnaround. The agency did not respond to a request for comment on why some successful applicants might still be awaiting funds.

Loans made under a disaster declaration differ from other categories of SBA loans because they come directly from the administration, and are not facilitated through another lender. Loan amounts and terms varied, according to an SBA press release in August, with interest rates up to 4% for businesses and around 2.5% for renters and homeowners.

David Kong Jr. lost a rental property in the Kula fire, and his $348,000 SBA homeowner disaster loan is going toward reconstruction costs not covered by insurance. 

He compared the disaster loan process to a mortgage application, one that required him to list assets that would function as collateral. Kong was informed the loan would be released in increments.

“They scrutinize pretty heavily, but all in all it’s a good loan from what I can gather. I haven’t received any funds yet, so the process is ongoing.”

With the end of this phase of federal assistance, attention will turn toward non-government commitments of support including from the which is planning for a years-long disbursement of the $126 million that remains in its Maui Strong Fund.

Civil Beat reporter Allan Kew contributed to this story.

Civil Beat’s coverage of Maui County is supported in part by a grant from the Nuestro Futuro Foundation.