REP. RICHMOND INTRODUCES RELIEF ACT FOR GULF COAST SMALL BUSINESSES

April 1, 2011
Press Release

OFFICE OF CONGRESSMAN CEDRIC L. RICHMOND

April 1, 2011

Contact: Aketa Marie Simmons 

(202) 579-5571

For Immediate Release

 

Rep. Richmond introduces relief act for gulf coast Small Businesses

 Washington, D.C. -- Congressman Cedric L. Richmond(LA-02) today introduced the Gulf States Small Business Interest Relief Act of 2011. Gulf Coast businesses called for relief and immediate access to capital in the wake of Hurricanes Ike and Katrina, and the Deepwater Horizon oil spill. Congressman Richmond provides the answer in this relief bill that lends distressed small firms a hand in these troubling times.

 The Gulf States Small Business Interest Relief Act of 2011 would authorize the Small Business Administration (SBA) to waive up to $15,000 of interest on 2005 and 2008 business disaster loans from Mississippi, Alabama, Louisiana, and Texas. The Act reduces only the interest payments, not the principal. It would also require the SBA to prioritize applications for:

  • businesses with 50 employees or less,
  • businesses that re-opened between September 2005 and October 2006 (for 2005 disasters) or September 2008 and December 2008 (for 2008 disasters), and
  • businesses impacted by the Deepwater Horizon disaster. 

 “The Gulf Coast faced unprecedented natural and man-made disasters over the past 6 years. Consider the impact of the economic impact of the disasters compounded with the recession and it’s easy to understand how Gulf State businesses face unique challenges. They are having a tough time in staying solvent and expanding,” said Congressman Richmond. “I’m proud that the Gulf States Small Business Interest Relief Act of 2011 will go a long way in providing our businesses with loan relief.”

Following Hurricane Betsy in 1965, Congress passed similar legislation which, among other provisions, gave SBA disaster loan recipients the option to waive principal and interest on the loan up to $1,800 over three years—the equivalent of $12,000 today. 

According to SBA disaster loan data, this program could help up to 11,000 businesses, and create or save as many as 40,000 jobs.  

 

Senator Mary Landrieu (D-LA) introduced the Senate companion, which is the Southeast Hurricanes Small Business Disaster Relief Act of 2011 (S. 653).

###