[StBernard] SBA Approves $1 Million in Economic Injury Disaster Loans for Gulf Coast Small Businesses Impacted by the Deepwater BP Oil Spill
Westley at da-parish.com
Wed Jun 2 09:52:30 EDT 2010
SACRAMENTO - The U.S. Small Business Administration to date has approved 27
economic injury disaster loans totaling $1,008,000 for small businesses in
the Gulf Coast region, SBA Administrator Karen Mills announced today.
Additionally, the agency has granted deferments on 66 existing SBA disaster
loans to small businesses and 61 disaster loans to homeowners in the region.
SBA is offering the loans and loan deferment options to fishing and
fishing-dependent small businesses as a result of the Deepwater BP oil spill
that shut down commercial and recreational fishing waters.
"SBA remains committed to taking every step we can to help small businesses
deal with the financial challenges they are facing as a result of the
Deepwater BP oil spill," Mills said. "These businesses are the foundation of
local economies in communities along the Gulf Coast and we know these loans
and loan deferments can provide the working capital they need right now to
keep them in a position to drive economic growth and provide good-paying
"While small businesses are encouraged to file claims with BP, these loans
and loan deferments can provide critical temporary assistance needed to
overcome the loss of revenue they are currently experiencing," Mills added.
SBA Economic Injury Disaster Loans (EIDL) provide working capital up to $2
million at an interest rate of 4 percent with terms up to 30 years. For
loan recipients in the declared parishes, SBA is deferring the first payment
on the loan for 12 months.
Small businesses must demonstrate economic injury as part of their loan
application. The loans may be used to pay fixed debts, payroll, accounts
payable and other bills that can't be paid because of the disaster's impact.
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 those 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
In addition, small businesses in areas included in the declaration that are
currently repaying an existing SBA disaster loan can request a deferment.
For information on seeking a deferment, small business owners may visit a
Business Recovery Center or contact SBA's Customer Service Center at (800)
SBA also is encouraging private lenders to consider, in the areas included
in the declaration, deferment relief on a case-by-case basis for small
businesses with SBA-guaranteed 7(a) or 504 loans. Small businesses should
contact their lender to request deferment consideration.
SBA customer service representatives and Louisiana Small Business
Development Center (LSBDC) counselors are available at 12 Business Recovery
Centers (BRCs) in Louisiana to meet one-on-one with owners of small
businesses that have been affected financially by the disaster, answer
questions about SBA's economic injury disaster loan program, issue loan
applications, explain the application process, help each business owner
complete their application and close their approved loans
Counselors from LSBDC are also 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.
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
SyQw306izm-o4-Ca6pVq5X-muq42BbMluFAblKz3MPFvaig4WOd3Ew==> . They may also
apply online using the Electronic Loan Application (ELA) via SBA's secure
Web site at https://disasterloan.sba.gov/ela
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 Website at www.sba.gov
SBA Field Operations Center - West, P.O. Box 419004, Sacremento, CA 95841
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