Playbook Urges New Financing for Wildfire Recovery
A coalition of community development lenders proposes seven financial products and 13 policies to close post-disaster funding gaps in Los Angeles.
Updated on Nov. 13, 2026 in Natural Disasters
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The Center by Lendistry released a disaster recovery playbook on Thursday, developed by the coalition FORGE LA, recommending seven financial products and 13 policies. The report analyzes financing gaps after the Eaton and Palisades wildfires in Los Angeles.
Why it matters
Insured losses were capped at around $45 billion, leaving a funding gap between insurance payouts and rebuilding costs for residents and small businesses. Only 35% of wildfire applicants who sought capital through community development financial institutions were approved, underscoring the strain on recovery finance across California.
The Eaton and Palisades fires caused $76 billion to $131 billion in property and capital losses, with insured losses capped near $45 billion. Only 35% of wildfire applicants seeking capital through CDFIs were approved, and the funding gap for future recovery remains unresolved.
The players
Center by Lendistry
A community development nonprofit that released the disaster recovery playbook analyzing wildfire financing gaps.
FORGE LA
A coalition of community development financial institutions formed to analyze gaps in the financial recovery system after the Los Angeles wildfires.
The details
The playbook recommends that community development financial institutions offer seven financial products and that local governments adopt 13 policies. More than 16,000 structures were destroyed in Altadena and the Palisades, most of them single-family homes. CDFIs deployed grants and loans ranging from under $1,000 to several million dollars, but microbusinesses and low-income households were often excluded from recovery help.
Timeline
January 2025: Los Angeles wildfires occurred, prompting creation of the CDFI coalition.
Thursday, November 13, 2026: The Center by Lendistry released the playbook.
Seasonal Patterns
The playbook builds on the January 2025 Eaton and Palisades wildfires, which destroyed more than 16,000 structures in Altadena and the Palisades. Its recommendations address a recovery financing gap that emerged when insured losses were capped near $45 billion against losses of $76 billion to $131 billion.
Residents who lost homes or businesses may find that insurance proceeds fall short of rebuilding costs, so it is worth understanding what capital options community development lenders offer. Microbusinesses and low-income households should check whether local CDFIs are accepting applications and what documentation they require.
The takeaway
Post-disaster recovery depends on financing that reaches beyond insurance, and the gap between insured losses and rebuilding costs falls hardest on small businesses and lower-income households. Preparing financial options before a disaster strikes may matter as much as the payout itself.
Further reading
For more on how wildfires and other events reshape recovery in the state, see Natural Disasters coverage for California.
Source note: This article includes information reported by Smart Cities Dive.
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