Jan 14

Written by:
1/14/2011 3:27 PM 

U.S. Small Business Administration, Sacramento, California, January 14, 2011 -- Michael Ricks, District Director of the U. S. Small Business Administration’s (SBA) Louisiana District Office, today reminded small business owners that the deadline to apply for SBA Economic Injury Disaster Loans as a result of the Deepwater BP Oil Spill is February 7, 2011.

“Since SBA Administrator Karen Mills declared 34 parishes a disaster last May, SBA’s Economic Injury Disaster Loans (EIDLs) have been available to small businesses. These working capital loans may be used by small businesses to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The maximum loan amount is $2 million with an interest rate of 4 percent and terms that can go up to 30 years. The first payment on these loans is not due for one year,” Ricks said.

“Since Administrator Mills’ declaration, SBA has met with nearly 22,000 business owners throughout the state and has approved over $14.7 million in low interest loans to Louisiana businesses,” Ricks continued.

These loans provide vital financial assistance to small businesses experiencing a temporary loss of revenue and/or increased costs as a result of the Deepwater BP oil spill and the drilling moratorium. These SBA disaster loans may help meet urgent financial needs that have not been fully compensated by BP, the Gulf Coast Claims Facility (GCCF), insurance or other sources. Any GCCF claim settlements may be used to repay these SBA loans.

In addition, small businesses in parishes included in the declaration that are currently repaying an existing SBA disaster loan may request a deferment. So far, the agency has granted deferments on 341 existing SBA disaster loans to small businesses and 325 disaster loans to homeowners worth $71 million in Louisiana resulting in more than $3.32 million in payment deferments. For information on seeking a deferment, small business owners may contact SBA’s Customer Service Center at (800) 659 2955.

SBA also is encouraging private lenders to consider 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.

Business owners 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@sba.gov, or by using SBA’s Web site at www.sba.gov/services/disasterassistance. They may also apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.

For more information, visit SBA’s Web site at www.sba.gov/services /disasterassistance. SBA Field Operations Center - West, P.O. Box 419004, Sacramento, CA 95841