LAWRENCE — They never figured they would need to qualify to be fire victims.
But it's a hard truth this week for the victims of January's devastating fire, after every property owner who applied for a federal disaster loan to help rebuild was denied the money.
Four days after the fire devoured 14 buildings on Market, Parker and Springfield streets, the federal government declared the site a disaster area. The declaration made available low-interest, taxpayer-funded loans through the Small Business Administration.
Out of the dozens of victims, nine people took out the paperwork —.six homeowners and three business owners —.and only three people have actually applied for these low-interest loans, according to the SBA.
All three applications have been rejected. The most common reason for denial is inability to repay, said Jack Camp, a communications specialist with the SBA.
"We try to do the best to approve as many as we can. It's unfortunate we haven't been able to approve any," Camp said.
For Rohani Sooknanan, 56, finding out she was rejected was like reliving the morning of the fire all over again.
Sooknanan was devastated as she watched the roof of her triple decker at 372 Market St. collapse and several parts of the home burn. She found hope from her legislators — everyone from Sen. John Kerry to Gov. Deval Patrick — who walked the scene, handing out business cards, promising loans that would get fire victims like her back on track.
"It was all smiles," she said. "I should have known."
She had expected to be in a house by now. Instead she is living with her son, his three young children and her dog in a cramped, one-bedroom apartment on Beacon Avenue — her only place to go as she waits on an insurance process that could take several more months.
A letter cited "lack of repayment ability" for her loan denial.
"I've never asked the government for anything. I just needed them to open one door for me. I wasn't asking for a handout," Sooknanan said. "Now they say I can't pay. I've never had a problem paying my bills. I have a good credit score. I can't see any reason for this."
Sooknanan, a tiny lady with a commanding voice, came over from Trinidad in 1980. She had bought her first home by 1986 while in Long Island, N.Y. She came to Lawrence last fall and bought the Market Street property.
She has always owned a home.
"I just can't live like this. I'm happy I'm not completely out in the cold, or have to live in a shelter, but I'm just going crazy," Sooknanan said. "I'm so furious. Every day I get more angry. I told them my situation. They told me I would qualify."
According to data from the Small Business Administration, about half of those who apply for loans are denied. Camp says they can get anywhere from a couple of hundred applications a day, to 10,000 a day like they saw with Hurricane Katrina.
In Massachusetts alone, there have been four disaster declarations since April.
Under the loans, homeowners can receive up to $200,000 in loans to rebuild or relocate, business owners can obtain up to $1.5 million, and renters, up to $40,000. The interest rates range from 2.75 percent to 8 percent, and are fixed for a maximum 30-year-term. The lower rates are for those without other financing options. But those with other options have to pay the loan within three years.
Camp would not name those who applied for the loan. Geraldo Torres of Methuen, the owner of the former Millennium Nightclub, where the fire started, has said he also applied but has not heard back from the government. He was in the process of renovating the nightclub into apartments and a restaurant.
"It's crazy. I feel the same way as (Sooknanan)," he said. "Some people talking to me think we already got all this money to rebuild. But I haven't heard anything. It's a waiting game."
Lawrence Mayor Michael Sullivan said he did not view the loan denials as an obstacle to rebuilding the block, since six of the property owners did have insurance policies on their homes. They would be able to recoup money this way to rebuild.
Habitat for Humanity pledged to rebuild two homes it lost on Market Street, as well as two more.
The properties on Parker Street — the former Millennium Nightclub and the grocery store next door — didn't have insurance. If they don't rebuild or get the means to do so, Sullivan said, the city may enter into an agreement with those property owners for that land.
"That corner is a pretty nice corner to develop," he said. "That's something that our planning department is looking at."
Sooknanan said she wouldn't have used her loan to rebuild, but to relocate instead, saying she wouldn't feel safe in that house. Since the fire, looters have trashed the place, taking the computer, televisions and jewelry. She spotted human defecation on the floor.
After applying for the loan, she had looked at a small one-family home near the South Lawrence East School.
The deadline for loan applications is March 25. The deadline for applications for loans to help people who suffered economic injury is Oct. 27. Anyone who has been denied can send a written appeal to the SBA within six months of receiving a rejection letter.
Sooknanan said SBA workers told her the review process could take up to six months. She just wants the government to review her application more quickly. She is sure they missed something.
"What am I going to do in six months? I could swing those payments. I know I could," she said. "I make sacrifices. I don't go out to restaurants or the movies. I pay my bills. Give me a loan and let me start my life again. Why is this like this?"
Her son Nirmal looked over at her — "It's called red tape."
Nirmal Sooknanan had lived on one of the floors in his mother's three-tenement. He lost everything too, and is afraid he'll have to send his children back to their mother in New York if things don't change.
Right now, the 35-year-old sleeps with his children in one bed, while his mother takes a couch.
"I want to tell these legislators, these government people, come live in our shoes for the month," he said. "No one has helped us. It's not the story people want to hear."
Kerry, who toured the site during the fire, e-mailed a statement for this story, promising help to the victims.
"For those who have been denied, we'll work with them to double-check their applications, make sure it's correct and try to help cut through the red tape. People have gone through hard times, a complicated application process," Kerry's press release said.
Congresswoman Niki Tsongas, D-Lowell, also encouraged victims to contact her office.
"Our office will continue working with these individuals during the upcoming six-month SBA appeal process period," Tsongas said in a statement. "My office is here as a resource for anyone who has been affected by the fire."
