[StBernard] SBA Administrator Offers Economic Injury Assistance to Louisiana Small Businesses Affected by Deepwater BP Oil Spill

[Westley Annis]

SBA Administrator Offers Economic Injury Assistance to Louisiana Small
Businesses Affected by Deepwater BP Oil Spill 

Small businesses can request deferrals on existing SBA disaster loans 

WASHINGTON - SBA Administrator Karen Mills announced today the agency is
making low-interest loans available to Louisiana Gulf Coast small businesses
suffering financial losses following the April 20 Deepwater BP oil spill
that shut down commercial and recreational fishing along the state's
southeast coast. 

Mills acted under the SBA's authority to offer economic injury assistance in
response to a May 4 request from Gov. Bobby Jindal. Mills' declaration,
signed late yesterday, makes SBA's Economic Injury Disaster Loans (EIDL)
available immediately to help meet the financial needs of qualifying small
businesses following the oil spill. 

"With the region still recovering from previous devastation and the national
recession of the last couple years, it's critical that we take every step we
can to provide small businesses with resources to make it through this
latest crisis so they can continue to drive local economic growth and
provide good-paying jobs,"Mills said. 

Mills' declaration covers the primary Louisiana Parishes of Jefferson,
Lafourche, Orleans, Plaquemines, St. Bernard and St. Tammany, the
neighboring Louisiana Parishes of Assumption, St. Charles, St. James, St.
John the Baptist, Tangipahoa, Terrebonne and Washington and the neighboring
Mississippi counties of Hancock and Pearl River. 

With the EIDL loans, SBA is offering working capital loans of up to $2
million at an interest rate of 4 percent with terms up to 30 years. The
loans may be used by small businesses that are unable to obtain credit
elsewhere to pay fixed debts, payroll, accounts payable and other bills that
can't be paid because of the disaster's impact. These loans can provide
vital economic assistance to fishing and fishing-dependent businesses to
help overcome the temporary loss of revenue they are experiencing. SBA
encourages businesses to also file claims with BP. Borrowers may be required
to use any claim payments to help repay these SBA loans. 

Eligible small businesses include small businesses engaged in shrimping,
crabbing and oyster fishing in the waters affected by the closure (employees
or crew members are not small businesses and are not eligible); small
businesses dependent on the catching or sale of shrimp, crabs and oysters,
suppliers of fishing gear and fuel; docks, boatyards, processors,
wholesalers, shippers, retailers and other small businesses dependent on
revenue from fishing, recreational and sports fishing small businesses, and
coastal small businesses. 

Understanding the financial challenges many of these business owners
currently face, the SBA is also strongly encouraging its participating 7(a)
lenders and Certified Development Companies (CDCs) to consider on a
case-by-case basis deferment relief for borrowers with SBA-guaranteed 7(a)
loans and 504 loans. 

Small businesses in the area who are repaying SBA disaster loans will also
be eligible for a deferment, on a case-by-case basis. For information on
seeking a disaster loan deferment, call the SBA's Disaster Customer Service
Center at (800) 659-2955. 

The SBA will announce the location of several Disaster Loan Outreach Centers
in the affected communities within the next few days. SBA customer service
representatives will be available at each center to meet with business
owners to answer questions about the disaster loan program, issue
applications and help them complete the forms. 

"We will be in Louisiana as long as we are needed and until we get the job
done," Mills said. 

Or they may obtain loan information and application forms by either calling
SBA's Customer Service Center at (800) 659-2955 (800-877-8339 for the
hearing impaired), e-mailing disastercustomerservice at sba.gov, or visiting
SBA's Web site at www.sba.gov/services/disasterassistance. 

The deadline to apply for these loans is Feb. 7, 2011. 

# # #