California Governor Schwarzenegger Provides Disaster Loan Guarantees for Small Businesses, Farmers Impacted by Wildfires

10/25/2007 -- California Governor Arnold Schwarzenegger today directed the Small Business Disaster Assistance Loan Guarantee Program to be activated to guarantee $7 million in loans for farms, agriculture-related businesses and businesses in communities that suffered damage or significant economic loss as a result of the southern California wildfires.

“These overwhelming wildfires have been extremely devastating and I will do everything I can to help these communities recover,” said Gov. Schwarzenegger. “This program will keep the economy moving by helping small businesses that may not qualify for federal aid and provide interim funding for those businesses waiting for federal assistance to arrive.”

California’s Small Business Disaster Loan Guarantee Program was originally implemented in the wake of the 1989 Loma Prieta Earthquake. The Program provides guarantees to local lenders for loans made to small businesses and farmers afflicted by a disaster in order to prevent business insolvencies and loss of employment in areas affected by a state of emergency.

At Governor Schwarzenegger's direction, the state will leverage $500,000 in existing funds to provide up to $7 million in loan guarantees to small businesses impacted by the southern California wildfires.

For assistance related to economic damage caused by the southern California wildfires, a small business or farm enterprise should contact the nearest Financial Development Corporation:

California Southern

600 B Street, Suite 2450

San Diego, CA 92101

(619) 232-7771

www.casouth.com

Orange County

1913 E. 17th Street

Santa Ana, CA 92705

(714) 571-1900

Pacific Coast Regional

3255 Wilshire Blvd., Suite 1501

Los Angeles, CA 90010

(213) 739-2999

www.pcrcorp.org

Inland Empire

516 N. Lemon Avenue

Ontario, CA 91764

(909) 391-6787

www.iefdc.org

Hancock

3600 Wilshire Blvd., Suite 926

Los Angeles, CA 90010

(213) 382-4300

www.hsbfdc.org

San Fernando Valley

5121 Van Nuys Blvd., 3rd Floor

Pacoima, CA 91403

(818) 205-1770

www.sfvfdc.org

The Small Business Disaster Loan Guarantee Program is available for farm enterprises that engage in the production of food or fiber, or ranching and raising livestock. It is also extended to nurseries engaged in the wholesale or retail selling of plants and agriculture related enterprises such as packing shed co-ops, feed yards, cotton gins and food processors.

For non-agricultural small businesses, an applicant must be eligible for disaster assistance from the U. S. Small Business Administration. Assistance through the Small Business Disaster Assistance Loan Guarantee Program will provide “bridge” funding for those small businesses waiting for that federal assistance to arrive.

On October 21, 2007, Governor Schwarzenegger proclaimed a State of Emergency in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura to make more resources available to fight the fires.

Source: California Governor