$45.6 Million More in Quake Aid Released : Recovery: The bulk of the federal money will go to small businesses that are not eligible for existing loan programs.

The Clinton Administration on Thursday announced $45.6 million in additional earthquake aid, most aimed at assisting small Los Angeles-area businesses whose heavy indebtedness makes them ineligible for existing federal loan programs.

Under the plan, applications for aid denied by the Small Business Administration will be referred to the Commerce Department’s Economic Development Administration, which will get $30 million of the federal funds to help businesses restructure their debt loads.

The money will be funneled through community development groups that are responsible for selecting businesses most likely to spur local economic recovery. About 100 such nonprofit organizations dot the Los Angeles region, officials said, but only about 50 have the expertise to handle the complicated financial arrangements with other lenders that the loans require.

Federal officials hope that once the quake-impacted businesses get back on their feet, they will be able to expand by obtaining loans from more conventional government and private sources.

“We have heard over and over about tragic stories of small businessmen but haven’t been able until today to address these problems adequately,” said Commerce Secretary Ron Brown, who with Budget Director Leon Panetta announced the new release of federal aid. “We have crafted an innovative program that meets those needs.”

Federal officials estimated that about 1,000 businesses in the quake damage area might be eligible for the economic development program, but with an average loan of $150,000, only about 200 may receive the funds. The program covers Los Angeles and Ventura counties.

In order to be eligible for the federal money, businesses must show that they have been affected by the Northridge quake, rejected for a Small Business Administration loan and have strong potential to create jobs.

Reps. Anthony C. Beilenson (D-Woodland Hills), Howard L. Berman (D-Panorama City) and Julian Dixon (D-Los Angeles) were instrumental in developing the loan program, but it had support among other Los Angeles area House members.

Sen. Dianne Feinstein (D-Calif.) also praised the loans as “a creative way to make sure the federal assistance is targeted to the job-creating businesses in most need.”

A bond issue for a similar state assistance program, aimed at owners of apartments and homes, was rejected by voters in the June 7 election.

The balance of the relief funds--$15.6 million will be spread among several other earthquake-related needs:

* $7.5 million to upgrade earthquake detection equipment and to study dangers from pipeline breaks.

* $4.1 million to correct health and safety problems in some of the 8,000 restaurants damaged in the quake.

* $4 million to move disaster victims to more permanent housing.

The money comes from a $500-million contingency aid fund that the Clinton Administration had at its disposal since shortly after the quake struck in January. After several previous allocations, $42.4 million remains in the account, Panetta said, and those funds will probably be needed to cover additional FEMA and SBA costs over the rest of the year.

Congress approved an $11.8-billion earthquake aid package in February. The White House this month requested an additional $400 million to augment the SBA’s ongoing loan program.