October 29, 2007, 6:32 AM PDT

Southern Californians who were affected by the fires may have some help with getting a loan. Federal loans with interest rates as low as less than three percent per year are available to fire victims with acceptable credit ratings and who can pay them off, the federal government said Sunday.

The U.S. Small Business Administration has begun taking loan applications from fire victims who apply through the FEMA disaster relief process. Through FEMA, fire victims with significant losses can also access federal and state grants.

The S.B.A. loans can go to homeowners or renters to replace damaged property, including cars. Loans to homeowners can go up to $200,000.

Persons with mortgages who are unable to get any credit elsewhere can refinance their mortgages with the low-interest federal loans, according to the SBA disaster fact sheet.

Business loans can go to nonprofit groups, the SBA said, and can go up to $1.5 million. Such loans may be used to relocate a business out of the disaster area, if necessary.

Persons getting an approved loan for damages can also get capital to pay for improvements to protect against future damages, and can fund such things as retaining walls or drains, the government said in a fact sheet.

Fire victims must have an acceptable credit record, show the ability to repay all loans, mad may have to put up collateral, such as real estate, as security for the loans. The interest rates start at just below three percent.

The deadline for loan applicants suffering physical damage to their property is Dec. 24, and the deadline for persons claiming economic damages has until July 28, 2008 to apply.

More information can be had by calling the SBA Disaster Assistance Customer Service Center, (800) 659-2955.

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