Apartment Fire Victims Offered Federal Loans

The victims of a March 31 fire that gutted two apartment buildings and damaged nearby homes in Downey are eligible for federal low-interest loans to replace damaged property, a spokesman for the U.S. Small Business Administration said.

The SBA last week declared the neighborhood around the apartments at 7157 and 7207 Stewart & Gray Road a disaster area and is offering 4% and 8% loans to enable victims to replace personal property and repair damaged structures, spokesman Coe Wilkins said.

Former tenants of the fire-ravaged apartments are eligible to borrow up to $20,000 to repair or replace damaged and destroyed possessions, Wilkins said. Owners of homes damaged by fire can receive up to $100,000 for repairs and $20,000 for personal items, while business owners can apply for as much as $500,000 in loans.

Tenants and homeowners must apply by Oct. 14, while business owners have until May 15, 1989, Wilkins said.

The fire caused an estimated $1 million in structural damage and about $2 million in damage to property within the apartments, Downey Fire Inspector Dennis Lockard said. The fire resulted in one minor injury--a woman fell and injured her neck while trying to flee.

About 60 of the 76 apartments in the two buildings were destroyed or damaged during the fire, Lockard said. The apartment buildings are being rebuilt. Six homes north of the complex sustained minor roof damage.

The fire was started by a cigarette discarded by a roofer working on one of the apartment buildings, Lockard said.

Loan information can be obtained by writing to the U.S. Small Business Administration Disaster Processing Center, P.O. Box 13795, Sacramento, Calif. 95853-4795, or by calling (800) 468-1713.