Culver City Finds a Way to Help Quake Victims : Assistance: Small sums are diverted from redevelopment projects as grants to businesses.

Werner Moeller has spent 27 years upholstering furniture. Now that he’s trying to stitch his business back together after the earthquake, Moeller is getting help from an unexpected source: Culver City.

As governmental budget shortfalls butt up against earthquake debris, nearly everyone agrees that small businesses need a financial boost. But few entities can afford to fill in the holes in the Small Business Administration’s disaster-loan safety net.

Culver City has found an unusual way to provide grants--not loans--to businesses, by redirecting money slated for city redevelopment projects, said Susan Berg, the city’s redevelopment project manager.

The grants are small--up to $2,500 to a business with 100 or fewer employees--and are intended to reimburse business owners after repairs are made. Culver City also is giving $2,000 grants to owners of homes damaged by the earthquake.

“The purpose of our program is to get a small amount of money out to small business, so people can get back in business and function,” Berg said. “So far, it’s worked fairly well.”

The department has sent out 26 checks so far, and has 39 grant applications pending. Moeller is hoping to get a check to cover about $2,100 he spent to replace glass and fix ceiling damage.

“The city of Culver City is taking care of us,” Moeller said. “Then maybe we can get on with our lives.”

Another grant program, administered by Operation Hope Los Angeles, aids small and minority-owned businesses and nonprofit organizations. Grants of equipment from major corporations have been made to more than 37 businesses and nonprofits. They runfrom $2,500 to $3,000.

For businesses with facade damage from the earthquake, Burbank is making one-year, interest-free loans of up to $2,500 each, using Department of Housing and Urban Development community block grant funds. The loans will be forgiven if businesses are turned down for SBA loans, said Steve Somers, a project manager for the Burbank Community Development Department. As part of the program, Burbank is also providing free facade redesigning service.

“The idea is to get the businesses back so that they look like they’re in business,” Somers said. Simi Valley is proposing a small loan program similar to Burbank’s.

Elsewhere, the U.S. Commerce Department is working on loan programs to fill some of the gaps left by the SBA. And the California Trade & Commerce Agency has developed a guarantee program for one-year bridge loans to tide companies over until their SBA checks arrive.

The state program provides loan guarantees for 95% of the loan amount. The program has accepted 118 applications and backed 12 loans totaling $1.2 million, said spokesman Mike Marando.

The bridge loans are issued by local lenders at prime rate with no fees, he said.