State Agency Speeds SBA Loan Process

North Valley Bowl in Sylmar is among several San Fernando Valley companies that are benefiting from a state loan guarantee program to help hundreds of earthquake-damaged small businesses rebuild.

According to figures released this week by the California Trade and Commerce Agency, the state emergency loan guarantee program has backed more than 227 loans totaling at least $18 million to small businesses hit by the Northridge temblor.

The bowling alley used its $128,000 loan guarantee to put in an automatic scoring system and spruce up the facility.

“Our program is a bridge program, an interim program,” said Mike Marando, spokesman for the state Trade and Commerce Agency.

Businesses qualify for the program if they have been turned down for a loan by the Small Business Administration, but are able to successfully appeal that decision. Many businesses overburdened by expenses because of the quake can’t afford to wait for SBA money to come through normal channels, which can take weeks.

Under the state program, most businesses get the money they need within three weeks of applying, state officials said.

“Without this funding we would not have been able to wait for the SBA,” said Larry Deagon, co-owner of North Valley Bowl.

The bowling alley would have gone out of business, Deagon said.

Altogether, 700 Southern California companies have qualified for the loan guarantees since the January disaster.