1. Money

What is the SBA Disaster Loan Program for BP Oil Spill Victims?

By

Question: What is the SBA Disaster Loan Program for BP Oil Spill Victims?
The BP Oil Spill has affected many individuals and businesses in the Gulf of Mexico, both directly and indirectly. If your business has been affected by this disaster, and you can't find recovery financing elsewhere, you may be eligible for this special SBA loan program.
Answer:

The SBA has initiated an Economic Injury Disaster Loan (EIDL) program to help businesses affected by the BP oil spill disaster, to meet their financial obligations. The program provides relief from economic injury directly caused by the disaster, with working capital funds to replace lost sales or revenue.

EIDL Program Specifics

  • The program is only available to businesses that are determined by the SBA to be unable to obtain credit elsewhere and to businesses with a reasonable ability to repay the loans.
  • To be eligible for this SBA assistance, businesses must have sustained economic damage, economic injury and financial need, up to $2 million per business, and be located in a disaster-declared county.
  • The interest rate is 4 percent per year, with a maximum 30 year term.
For more information on this loan program and other BP oil spill disaster loan programs, go to the SBA Disaster Assistance section.

©2014 About.com. All rights reserved.