The first federal loans for victims of the Oct. 1 earthquake were distributed Monday in Whittier, with 17 residents collecting a total of $327,000 to repair damaged homes and businesses.
About 2,500 people have submitted applications for low-interest loans to the U.S. Small Business Administration, and 12,000 other applications have been distributed but not returned, SBA spokesman John Tumpak said. Recipients pay 4% or 8% interest, depending on their income.
Homeowners may apply for loans for damage up to $200,000 and merchants may borrow up to $500,000. It is taking about three weeks to process the loans, Tumpak said. Application deadlines are Dec. 7 for home loans and July 7, 1988, for business loans.