Los Angeles Times Special Quake Report: One Year Later : SBA Loans

About 50% of Small Business Administration loans for earthquake assistance have been approved:

TOTAL APPLICATIONS: 229,684 Total applications approved: 115,958 Business: 17.2% Home: 80% E.I.L*: 2.8%

AMOUNT LENT: $3.73 BILLION Home: $2.33 billion Business: $1.29 billion E.I.L*: $106 million

APPROVAL RATES

Home: 56% Business: 61% E.I.L*: 25%

SBA “GHOST TOWN” LOANS (to assist owners of ghost towns)

Total applications: 402 Total disbursed: $17 million

* E.I.L.=Refers to economic injury loans to small business and agricultural cooperatives that have no credit available elsewhere.

Bankruptcies

The number of personal and business bankruptcies filed in Los Angeles last year fell from 1993. The quake was actually beneficial to some businesses, such as construction contractors.

1993: 54,850 1994: 46,450 (projected figure)

Insurance Update

Although nearly all earthquake claims have been settled, they sometimes get reopened as hidden damage is discovered.

Claims reported: 390,000 Claims settled: 95% Insured property damage: $10.4 billion

Complaints

The bulk of consumer complaints about their insurers consisted of claim handling problems.

Complaints filed with state: 1,719

Foreclosures

It is impossible to tell how many foreclosures are a result of the quake. But the figures are on indicator of the state of the economy. Foreclosures by quarter in Los Angeles County in 1993 and 1994:

Sources: TRW-Redi Property Data; California Dept. of Insurance; Western Insurance Information Service; Small Business Administration; Bankruptcy Bulletin.

Quake Memories

Care to exchange your memories of the quake with your neighbors? Compare notes on the pace of recovery? Brainstorm about what needs to be done before the next tremblor? Sign on to TimesLink, the Times’ online service, and join a bulletin board discussion on the quake aftermath. Jump: TimesLink BB and select the topic Quake Anniversary.

Earthquake Insurance

As the first anniversary of the devastating Northridge earthquake approaches, questions remain about how casualty losses, insurance settlements and FEMA grants should be handled on 1994 income tax filings. Times on Demand has prepared a compilation of the most-asked questions and answers on this subject. To order send $4, plus 50 cents delivery to Times on Demand, P.O. Box 60395, Los Angeles, Ca. 90060. Please allow two weeks for delivery. You may also order by calling 808-8463. Press *8630 and select option 3. Order Item No. 2823.