Quake Victims Line Up to Apply for Federal Loans

Bill Mannatt, out of work and facing earthquake repair bills as high as $150,000, drove to Arcadia with his hopes high on Monday, the first day of a federal loan program for owners of homes and businesses damaged in the Sierra Madre earthquake.

“I’m crossing my fingers,” said the 43-year-old Sierra Madre man.

By midday, more than 225 people had gone to centers in Arcadia and Pasadena seeking low-interest loans from the Small Business Administration.

Homeowners are eligible for $100,000, and business and apartment owners can receive up to $500,000. Loans have no maximum or minimum income limits, and as much as $20,000 is available for damaged personal property. Loans are repaid over as long as 30 years, at either 4% or 8% interest, depending on what the applicant can afford.

Mannatt’s 79-year-old wood frame house shifted off its foundation in the June 28 quake. Part of the foundation crumbled, half the doors don’t work and the carport collapsed, said Mannatt, who was laid off from his job five days before the quake.

A contractor who inspected the house told Mannatt that repairs will cost $150,000. “My insurance covers $110,000, but there’s a $10,000 deductible,” and it will cost $20,000 to bring the carport up to code, Mannatt said.

Damage estimates from the 5.8 magnitude quake stand at more than $42 million. Sept. 9 is the deadline for applying in person or by mail for the federal loans. SBA loan officer Nick Ballinger said that applying in person can help the staff ensure that all paperwork is completed properly.

Property owners turned down for SBA loans, or who get less than they requested, can go to the state Department of Housing and Community Development, which operates its own low-interest loan program for those who have exhausted all other financial sources.

Temporary SBA offices are open Monday through Saturday, 7 a.m. to 7 p.m., at the senior citizens center, 405 S. Santa Anita Ave. in Arcadia, and at the Pasadena Unified School District office, 351 S. Hudson Ave. in Pasadena. Applications can also be obtained from the SBA, P.O. Box 13795, Sacramento, CA 95853-4795, or by calling 800-468-1713 during normal business hours.