FREEZE RELIEF COMES IN LOANS SMALL BUSINESSES CAN APPLY FOR HELP.

Byline: KAREN MAESHIRO Staff Writer

LANCASTER -- The U.S. Small Business Administration opened a disaster office Wednesday to offer low-interest loans to small businesses that suffered financially because of January's record-breaking cold snap that destroyed more than $1 billion worth of California crops.

The disaster loans are being made available to small nonfarm businesses, such as those that are dependent on or do business with agriculture or whose customers rely on farm income.

Eligible businesses include packing houses, truckers, suppliers of agricultural equipment or services, and ``main street'' businesses, such as diners, gas stations and markets.

``This is a vital service that the federal government has made available to businesses that have been impacted,'' SBA Los Angeles District Director Alberto Alvarado said.

The Lancaster office is one of 32 Disaster Loan Outreach Centers that the SBA is opening throughout the state and is the one designated to serve Los Angeles County.

``The location was selected based on where we believed it would be most convenient for people affected by the disaster,'' said Phil Duncan with the SBA's Office of Disaster Assistance.

In Ventura County, a loan outreach center opened Monday in Oxnard at the Oxnard Chamber of Commerce, 400 E. Esplanade Dr., Suite 302.

The Lancaster office is located at 42110 Sixth St. W. at the Los Angeles County Fire Department's North Country Training Center.

The hours are 9 a.m. to 5 p.m. Wednesdays through Fridays, and there will be staff on hand to answer questions and assist in completing loan applications.

The SBA is offering Economic Injury Disaster Loans of up to $1.5 million with a 4 percent interest rate and terms of up to 30 years.

The deadline to apply is Oct. 24.

Applying for loans can be done by visiting an SBA disaster loan office, calling SBA toll-free at [phone], or visiting the Web site, www.sba.gov/services/disasterassistance.

By law, agricultural businesses such as growers, farmers and ranchers are not eligible for SBA disaster assistance. They should contact the U.S. Department of Agriculture for help, SBA officials said.

The SBA loans can be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact and to provide help to overcome loss of revenue.

The loans can't be used to expand a business and are not intended to cover physical damage, such as from burst pipes.

``The whole goal is to keep things going until business returns to normal,'' Duncan said. ``If there's any doubt, submit a loan application. Let us determine eligibility. Don't exclude yourself. It makes a lot of sense to submit an application.''

The five-day freeze beginning Jan.11 led to record-setting temperatures in the Antelope Valley and caused water pipes and lines to burst, causing damage to homes, businesses and schools.

Lancaster experienced a five-day spell of single-digit low temperatures from Jan. 13 through 17. The lows recorded in Lancaster on Jan. 14 and Jan. 15 of 3 and 7 degrees, respectively, set records for those days, according to the National Weather Service.

In Palmdale, the lows of 10 and 14 degrees on those same two days also set records.

The all-time recorded low for Lancaster is 2 degrees on Dec. 24, 1984; and for Palmdale, it's 6 degrees on Jan. 13, 1963.

Ventura County lost $281 million worth of crops. That figure included $85.4 million to plants grown in nurseries new to the county.

Such tree and shrub nurseries, two-thirds of which moved to the county since 1990, generally sell larger and more expensive plants.

The county's annual crop is worth $1.25 billion, so a $281 million loss represents a major blow to growers -- including an estimated $66.5 million in avocados, $46.6 million in lemons and $26.1 million in strawberries.

The frost damage put many county farmworkers who would normally be harvesting these crops out of work, officials said.

karen.maeshiro(at)dailynews.com

[phone]

F.Y.I.

The deadline to apply for a low-interest loan from the U.S. Small Business Administration is Oct. 24. Applying for loans can be done by visiting an SBA disaster loan office, calling SBA toll-free at [phone], or visiting the Web site, www.sba.gov/services/disaster- assistance.

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photo, box

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(ran in AV edition only) Phil Duncan, left, and Alberto Alvarado of the U.S. Small Business Administration announce the offering of low-interest disaster loans.

Jeff Goldwater/Staff Photographer

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(ran in AV edition only) F.Y.I. (see text)