SBA to Boost Loans Aiding Flood Victims

Federal disaster loans stemming from this week’s floods will probably exceed the amount triggered by the 1992 storms, a Small Business Administration official said Wednesday.

Alfred Judd, the SBA’s acting West Coast area director, said he believed his agency will eventually lend at least 10% more to victims of this year’s floods than the $30 million issued as a result of the 1992 storms.

Judd was one of several officials who accompanied the head of the agency, SBA Administrator Philip Lader, on a day-long visit to Los Angeles. Lader was here to tour quake-damaged homes and businesses whose repairs were aided by SBA loans.

SBA authorities said they are prepared to help current flood victims with loans.

“We have sufficient funds to cover this disaster,” said Bernard Kulik, assistant administrator for disaster assistance.

Because Los Angeles County was one of the 24 California counties declared a federal disaster area by President Clinton, local residents are eligible for emergency loans. Businesses can get loans up to $1.4 million, homeowners can get loans of up to $200,000. (Despite its name, the Small Business Administration has been a source of homeowner loans for decades).

Lader donned a royal-blue windbreaker emblazoned with the words “SBA Disaster Assistance” for a look at two buildings near the corner of Van Nuys and Ventura boulevards that had been rehabilitated with SBA funds.

During the brief tour that was equal parts information gathering and schmoozing, Lader chatted with property owners, merchants and a condominium owner.

“What was the total amount of your damage?” he asked one property owner. And then to Joe Fabrocini, owner of Fab’s Italian Kitchen, he commented, “I’ll have to come back here and try your calamari.”

The earthquake victims praised the SBA, whose help, they said, was key to their rebuilding efforts. Don Studt, who owns a two-story commercial building at 4348 Van Nuys Blvd., said his only criticism is that at one point the SBA told him that a certain step in the loan approval process would take four to six weeks. In reality, he said, it took more than three months.

Lader went from the Sherman Oaks location to the Sportsmen’s Lodge in Studio City, where he attended a luncheon sponsored by the Valley Economic Development Center. He was introduced by Mayor Richard Riordan, who greeted him: “Welcome to the city of sunshine and angels. We hope you’re enjoying the weather.”

As of Dec. 28, the SBA had approved more than 115,000 loans at a value of more than $3.7 billion to victims of the Northridge earthquake--more than the amount made to the victims of the 1989 Loma Prieta earthquake, the 1992 Los Angeles riots, Hurricane Hugo and Hurricane Andrew combined.