Jul. 29--Two families who lost their residences in the Chestnut Street fire said they were turned down for loans from the U.S. Small Business Administration.

Since Saturday, the administration has been running a Disaster Loan Outreach Center at the local Salvation Army to help fire victims complete applications for low-interest, long-term loans.

The SBA started the loan application process in response to a July 17 letter from Gov. Ed Rendell who asked that the city be declared a disaster area after the July 8 blaze that displaced 61 people who lived on the 700 block of Chestnut Street.

The intentionally set fire caused an estimated $2.6 million in damage to homes.

By late afternoon Tuesday, 21 Chestnut Street residents had completed loan applications that are sent to SBA's processing and disbursement center in Fort Worth, Texas, where officials determine whether to approve the loans, said Greg Dawson, spokesman for the SBA's Office of Disaster Assistance.

That process typically takes about 21 days, he said.

One applicant, Jacqueline Mitchell -- who was living at 713 Chestnut St. -- said she has already heard from SBA loan officials. They said she did not qualify for a loan because she is unemployed and receiving child support, Mitchell said.

Her loan application will be good for up to six months, meaning she can update her financial information and try again, Mitchell said.

"I don't think it's fair," she said. "We need help now. They should help us get back

on our feet. Mostly everybody living there (Chestnut Street) were laid off or on low incomes."

New job: At the time of the fire, Mitchell said, she was recovering from surgery. She said she had been employed, but was not able keep her job because of an ongoing health condition.

Mitchell, 41, said she recently was hired to be a packer at local Stauffer Biscuit Co. She said she will consider reapplying for a loan in the near future.

In the meantime, she has moved to New Oxford, where her Chestnut Street landlord has a one-bedroom apartment.

Mitchell said she hopes to move back to York to be closer to her job.

Mother of 3: Patricia Sanchez, a mother of three who lived at 725 Chestnut St., said she applied for the loan and was turned down. Sanchez said she used donations from community and friends to help her get a place in the 700 block of Wallace Street, another city property owned by her Chestnut Street landlord.

"You just gotta do what you gotta do," she said. "I just took the first place I could afford."

Dawson said that in reviewing loan requests SBA officials have to determine whether applicants can afford to repay what they borrow.

The SBA loans can be used to replace or repair real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed, according to SBA's Web site. Interest ranges from 2.19 percent to 6 percent, depending on the loan's purpose and whether the applicant can get credit elsewhere.

The maximum term is 30 years, and applicants must have an acceptable credit history.

-- Reach Eyana Adah McMillan at 505-5438 or emcmillan@yorkdispatch.com.

Disaster loans The U.S. Small Business Association's Disaster Loan Outreach Center has been set up at the Salvation Army Community Center at 30 E. King St. in York City.

Loan Outreach Center hours are 9 a.m. to 4:30 p.m. Wednesday and Thursday.

For information, call the SBA's Customer Service Center at 1-800-659-2955. People who are hearing impaired can call 1-800- 877-8339.

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Copyright (c) 2009, The York Dispatch, Pa.

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