Small Businesses Hit Hard By Oil Spill Eligible For SBA Disaster Relief Loans

By Editor, Times of San Diego

October 28, 2021

The U.S. Small Business Administration on Thursday began offering federal disaster loans to small businesses dealing with the effects of the Orange County oil spill.

A virtual business recovery center will provide information for those interested in Economic Injury Disaster Loans of up to $2 million.

According to SBA Administrator Isabella Casillas Guzman, the agency acted under its own authority to declare a disaster in response to a request from Gov. Gavin Newsom’s Office of Emergency Services.

The disaster declaration makes SBA assistance available not only in Orange County, but in San Diego, Los Angeles, Riverside and San Bernardino counties.

The deadline to apply for the loans is July 27.

“SBA’s mission-driven team stands ready to help California small businesses impacted by the pipeline oil spill,” Guzman said.

Eligibility is based on the financial impact of the disaster only and not on property damage.

The loans have an interest rate of 2.855% for small businesses and 2% for private nonprofit organizations, with terms of up to 30 years. They are restricted to small businesses facing hardships that lack the financial ability to offset the adverse impact of the disaster.

Eligible parties include small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size. Eligible expenses include fixed debts, payroll, accounts payable and more.

“Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” said Tanya Garfield, director of SBA’s Disaster Field Operations Center-West.

Sen. Alex Padilla, D-Calif., applauded the SBA for offering the low-interest disaster relief, especially as “small businesses continue to face the challenges of the COVID-19 pandemic, and now many in Southern California are also feeling the impact of the oil spill.”

Business owners may apply online, receive additional disaster assistance information and download applications.

Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information. Individuals who are deaf, or people with hearing loss, may call 800-877-8339.

For those who prefer U.S. mail, completed applications should be sent to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX, 76155.

The oil spill was reported off the coast near Huntington Beach on Oct. 2.

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