In January, fires near Los Angeles — and as of Thursday, one near San Diego — have displaced tens of thousands of people, burned thousands of homes and killed 28 people.
To mitigate the financial impact, roughly 300 lenders have offered 90-day grace periods on loan payments to Californians affected by the blazes. Two fintechs based in the area said their employees — who mostly work remotely — had avoided direct impacts but were supporting friends and family who lost their homes, were evacuated or were sickened by inhaling smoke.
Two of the fires have been fatal. The Palisades fire, the largest and most notorious, has killed 11 people, destroyed 6,809 structures and burned more than 23,400 acres,
The Hughes fire is the third major fire burning in the Los Angeles area, though so far affecting a less populated area north of Santa Clarita, a city of 224,000. As of Friday morning, the fire had burned more than 10,396 acres, but officials did not provide a tally of people killed or structures destroyed by the fire. The blaze started on Wednesday and is the least contained of the three major fires.
A fire east of San Diego, in wilderness just north of the U.S.-Mexico border, began burning Thursday and had burned 5,389 acres as of Friday morning.
LA fintech employees avoid direct harm
Many LA-based fintechs have largely remote workforces, with some employees working from their homes in the area. The employees of SoLo Funds, for instance, had avoided direct impacts of the fires, according to president and co-founder Rodney Williams, but they did experience some significant changes.
“From health challenges caused by poor air quality to supporting family and friends who have lost their homes and are now staying with us, the effects have been deeply felt,” Williams said.
Team members with young children have had to leave the area due to congestion and other health concerns, Williams said. Others with asthma have faced worsening symptoms.
“At SoLo, we are committed to supporting our team during this challenging time,” Williams said. “With our unlimited vacation policy, employees have felt empowered to take the time they need to prioritize their health and well-being.”
Employees of fintech Dave also were not directly affected, according to CEO Jason Wilk. The company is based in Los Angeles but has a fully remote workforce. The company has automatically extended repayment dates on its cash advance offering by 30 days for people in zip codes affected by the fires, he said.
State banks and credit unions offer forbearance
On Thursday, California Governor Gavin Newsom
The California Department of Financial Protection & Innovation, which has published a public list of lenders and services committed to providing relief, said that the federally chartered institutions that had committed to offering relief were Bank of America, Citi, JPMorgan Chase, U.S. Bank, Wells Fargo and BMO Bank.
These lenders have committed to offering a 90-day mortgage forbearance period, including payment options that do not require immediate repayment of unpaid amounts at the end of the forbearance period. These commitments also provide protection from new foreclosures or evictions for at least 60 days.
Customers must contact their mortgage servicer to get relief, according to the department.
Credit unions are “deeply committed to supporting their members and communities by offering immediate financial relief,” said Scott Simpson, president and CEO of the California & Nevada Credit Union Leagues.
“These wildfires have caused immense trauma, and it’s imperative we step up to provide a safety net for those affected, administering continued relief and compassionate financial support as they navigate this challenging time,” Simpson said.