[StBernard] SBA Announces No Loan Payment Due for One Year on Disaster Loans to Small Businesses Economically Affected by Deepwater BP Oil Spill; Opens Two More Business Recovery Centers

[Westley Annis]

SBA Announces No Loan Payment Due for One Year on Disaster Loans to Small
Businesses Economically Affected by Deepwater BP Oil Spill; Opens Two More
Business Recovery Centers
 
SACRAMENTO - The U.S. Small Business Administration (SBA) today announced
that it is extending to one year the first payment due date on its Economic
Injury Disaster Loans to owners of small businesses that have been
financially impacted by the Deepwater BP Oil Spill.  In addition, SBA is
opening two more Business Recovery Centers to assist owners of small
businesses affected by the Deepwater BP Oil Spill.  The new Business
Recovery Centers will open in St. Bernard Parish and Terrebonne Parish on
Monday, May 17. 
 
"It is 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," said SBA
Administrator Karen Mills.  "Effective immediately, no loan payments will be
due for one year on all loans approved to small businesses affected by the
Deepwater BP Oil Spill.  By taking this step, we are helping to ensure the
continued viability of these small businesses," Mills said.  
 
"Due to the severe economic losses inflicted on Louisiana small business
owners affected by the Deepwater BP Oil Spill, we want to provide every
available service to help them get back on their feet," Mills continued.
Beginning May 17, SBA customer service representatives and Louisiana Small
Business Development Center (LSBDC) counselors will be available at two new
Business Recovery Centers (BRCs) to meet one-on-one with owners of small
businesses that have been affected financially by the Deepwater BP oil
spill, answer questions about SBA's economic injury disaster loan program,
issue loan applications, explain the application process, and help each
business owner complete their application.  
 
These two centers are in addition to 10 previously opened BRCs, which are
co-sponsored by SBA and Louisiana Economic Development.  These locations
will be open on the days and times indicated: 
 
 SBA may 17 press release pic
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Counselors from LSBDCs will also be available at each center to provide
post-disaster counseling on how to best overcome the effects of the
disaster, and a variety of management, financial and marketing assistance,
including how to adapt a business model to post-disaster changes in markets,
supplier relationships, employee sources and other key factors. These
counseling services are free.

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.
 
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 that are repaying previous SBA disaster loans
also may 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.
 
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. 
 
SBA customer service representatives and LSBDC counselors continue to be
available at the ten BRCs previously opened.  Their locations, days and
times of operations are at follows.  No appointment is necessary to meet
with any representative. 
 
For business owners who are unable to visit a center, they may obtain loan
information and application forms by calling SBA's Customer Service Center
at (800) 659-2955, or (800) 877-8339 for the hearing impaired, e-mailing
disastercustomerservice at sba.gov, or by visiting SBA's Web site at
www.sba.gov/services/disasterassistance
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2OeuUpRaeMteZ4qQrKZX49Rpx8B2uDU07Bi4uVnHTKDzMwpB4Bw5AQ==> .  They may also
apply online using the Electronic Loan Application (ELA) via SBA's secure
Web site at https://disasterloan.sba.gov/ela
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The SBA declaration covers the primary Louisiana parishes of Ascension, East
Feliciana, Evangeline, Iberia, Jefferson, Lafourche, Livingston, Orleans,
Plaquemines, St. Bernard, St. Charles, St. Martin, St. Tammany, Tangipahoa,
Terrebonne and Washington;and the neighboring Louisiana parishes of Acadia,
Allen, Assumption, Avoyelles, East Baton Rouge, Iberville, Jefferson Davis,
Lafayette, Pointe Coupee, Rapides, St. Helena, St. James, St. John the
Baptist, St. Landry, St. Mary, Vermillion, West Baton Rouge and West
Feliciana.  The declaration also covers seven neighboring Mississippi
counties: Amite, Hancock, Marion, Pearl River, Pike, Walthall and Wilkinson.

 
The deadline to apply for these loans is February 7, 2011.
For more information visit SBA's Web site at www.sba.gov
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SBA Field Operations Center - West, P.O. Box 419004, Sacramento, CA 95841

 
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