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
disastercus...@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.
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