FOR IMMEDIATE RELEASE
ATTN: NEWS EDITORS
Contact: Jane Cutter; John Bracken
July 27, 1994
SMALL BUSINESS ADMINISTRATION ISSUING LOW INTEREST HARDSHIP LOANS FOR EARTHQUAKE DAMAGE TO WEALTHY & POLITICALLY-FAVORED APPLICANTS, PEACE & FREEDOM PARTY GUBERNATORIAL CANDIDATE GLORIA
LA RIVA CHARGES.
MANY LOW AND MIDDLE INCOME APARTMENT, CONDO AND HOMEOWNERS ARE DENIED AND THREATENED WITH LOSS OF HOMES.
Peace & Freedom Party gubernatorial candidate Gloria La Riva released documents that reveal the Small Business Administration's policy of political favoritism in consideration and granting of earthquake relief loans at a July 22 press conference at the Small Business Administrationps headquarters in Chatsworth/Northridge Calif.
Thousands of apartment, home and condo owners, many of whom are low and mid-income workers, are being denied SBA loans to repair their earthquake-damaged homes and businesses. Instead, the SBA is approving low-interest (3.625%) loans to wealthy applicants seeking to replace their luxury goods.The SBA also has Presidential Interest and Special Interest files of applicants that are campaign donors and personal friends of the president. These applicants have received special consideration.
We demand an immediate investigation into this scandalous situation and the recall of all SBA loans that have been made to cover the costs of replacing luxury items, La Riva stated. SBAps policy clearly shows that the government represents the interests of the wealthy and powerful. To get government aid, you have to be rich. Those with the most desperate need are being ignored by an agency set up to assist them.
Other agencies of the government are actually using the earthquake as a way to go after undocumented workers. Applicants seeking disaster housing assistance from the Federal Emergency Management Agency are being screened by immigration officers. Undocumented immigrants seeking assistance are then being prosecuted.
SBA documents detail what a hardship loan to someone with an income over $600,000 actually covers: replacement of Waterford crystal, fine china, antiques and other luxury goods. To obtain a copy of the
documents, call (415) 826-4828.
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