Small Business News

Small businesses in California have been recently reminded of the July 27, 2022, deadline to apply for an SBA federal disaster loan for economic injury caused by the pipeline oil spill in Orange County that began October 2, 2021.

Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West said the reminder was for small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size. Such businesses can apply for Economic Injury Disaster Loans up to $2 million to help meet working capital needs caused by the disaster.

The low-interest federal disaster loans are available in Los Angeles, Orange, Riverside, San Bernardino and San Diego counties.

The interest rate is 2.855% for businesses and 2% for private non-profit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s unique financial condition.

Director Garfield said of the loans: “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the applicant suffered any property damage.”

The disaster itself involved 25,000 gallons of crude oil leaking into waters off the coast of Huntington Beach. Oil from the spill spread over a distance of 25 square miles and led to canceled events and closed beaches. It also shuttered fisheries for weeks and harmed sensitive wildlife and habitat in an area rich with animal life such as humpback whales, harbor seals and sea turtles.

Oil transportation firm Amplify Energy was operating the broken pipe and has caused controversy by allegedly using a ‘streamlined, opaque permitting process to repair and restart’ the pipeline. The company is facing a misdemeanor negligence charge over their response to the leak, while Amplify Energy themselves are suing two ship operators over their potential roles in causing the damage to the pipe. This comes after an investigation discovered the pipeline had shifted by 105 feet, rupturing the pipe’s casing and causing the oil spill. The damage was likely caused by one or more ship anchors catching on the pipe and dragging it along the sea bed.

Recently, four Southern California representatives shared a letter condemning the approval process. The letter read: “This expedited approval process is unwarranted and dangerous. This is no ordinary repair – it is a repair of a decades-old, sub-sea pipeline following a significant rupture and leakage. Given the threat this aging infrastructure poses to our ecologically sensitive marine resources, coastal economy, and communities, this project requires site-specific analysis before the federal government grants its approval.”

Applicants for a disaster loan can apply online as well as receive additional disaster assistance information and download applications at the Disaster Loan Assistance website. They can also email or call SBA’s Customer Service Center at (800) 659-2955 for more information on SBA disaster assistance.

People who are deaf, hard of hearing, or have a speech disability, can dial 711 to access telecommunications relay services.

Completed applications must be mailed to the U.S. Small Business Administration, Processing and Disbursement Center, whose address is 14925 Kingsport Road, Fort Worth, TX  76155.

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This article, "Small Businesses in California Affected by 2021 Oil Spill Face Important Deadline" was first published on Small Business Trends

Read more: https://smallbiztrends.com/2022/07/deadline-approaching-for-small-businesses-in-california-affected-by-oil-spill.html

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The U.S. Small Business Administration (SBA) has announced another round of Economic Injury Disaster Loan (EIDL) is available to small businesses in six states affected by drought. Economic disaster recovery loans are available to small businesses in South Dakota, Texas, Nevada, Nebraska, Kansas, and Idaho.

Small nonfarm businesses, small agricultural cooperatives, and small businesses engaged in aquaculture may qualify for EIDL loans of up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

Through the EIDL the SBA provides low-interest disaster loans to help businesses and homeowners recover from declared disasters. The scheme is designed to help businesses located in declared disaster areas such as droughts, hurricanes, flooding, and wildfires. The SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster, which the Secretary declared this drought on June 13, 2022.

EIDL loans can be used to cover losses not covered by insurance or funding from the Federal Emergency Management Agency for both personal and business. This includes business operating expenses that could have been met if the disaster didn’t take place.

“The SBA is strongly committed to working around the clock, providing dedicated emergency assistance to the small businesses and non-profits that are facing economic disruption due to the COVID-19 impact.  With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low-interest loans and emergency grants – reducing the economic impacts on their businesses, employees and communities they support,” said SBA Administrator Jovita Carranza.

EIDL Eligible counties include:

SBA loans are small-business loans partially guaranteed by the U.S. Small Business Administration and issued by participating lenders, usually banks. The SBA provides low-interest, long-term loans for physical and economic damage caused by a declared disaster.

There are three steps to apply for EIDL loans: check whether the SBA has issued a disaster declaration in their area; apply for a disaster loan; and check if you have been awarded the loans by login into your account and checking your email for updates.

Affected businesses can apply online, and receive additional disaster assistance information. Businesses can also download applications at https://disasterloanassistance.sba.gov/. The deadline to apply for economic injury is Feb. 13, 2023.

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This article, "EIDL Loans Available to Small Businesses in 6 States Due to Drought" was first published on Small Business Trends

Read more: https://smallbiztrends.com/2022/07/eidl-loans-6-states-small-businesses-affected-by-drought.html

Small businesses in California, Oregon and Washington have been recently reminded of the July 26 and July 28 deadlines for applying for SBA federal disaster loans for economic injury caused by wildfires last year.

Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West said certain small businesses can apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disastrous fires. The eligible businesses include small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size.

The deadline means there is less than a month for such businesses to file their applications which can be a huge help in these trying times. Businesses in California and Washington have an earlier deadline of July 26, 2022, while businesses in Oregon have a deadline of July 28, 2022.

The interest rate is 2.88% for businesses and 2% for private non-profit organizations with terms up to 30 years. Final loan amounts and terms will be set by the SBA and will be based on each applicant’s financial condition.

Director Garfield said of the loans: “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the applicant suffered any property damage.”

Applicants for the loans can apply online at the Disaster Loans website, as well as receive additional disaster assistance information or download applications. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

The wildfires that led to these loans being made available occurred between July and September last year. The White Center Fire in King County, Washington, started on July 5, and the Seattle Times reported on the conditions business owners were faced with, saying: “The fires, plus ongoing window smashings and burglaries, have left White Center businesses devastated and in a ‘state of emergency,’ said Helen Shor-Wong, program manager for the White Center Community Development Association, at an Oct. 8 meeting between business owners and King County leaders.”

The Seattle Times also described how business owners were demanding more help from the county and elected officials, saying: “Ana Castro, co-owner of the longtime White Center stalwart Salvadorean Bakery and Restaurant, talked about paying $4,000 to have her plate glass window repaired after it was smashed, and her staff not feeling safe to come to work.

“But it’s not just the series of destructive events that are frustrating business owners, it’s what they say is the lack of response from county officials and other elected officials to their plight. At the meeting, business owners presented the county with a petition asking that they do more to help.”

The Hopkins Fire in Mendocino County, California, raged between September 12-20. The longest-running fire was the Bootleg Fire in Klamath County, Oregon, which took around five weeks to get under control between July 6 and August 15.

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This article, "Northwest Small Businesses Affected by Wildfires Face Important Deadline" was first published on Small Business Trends

Read more: https://smallbiztrends.com/2022/06/northwest-small-businesses-face-sba-federal-disaster-loan-deadline.html