Vice President Biden Makes His Second Trip to the Gulf Coast; SBA Assistance Loans Surpass $15 Million

In his second trip to the Gulf Coast since the Deepwater Horizon oil spill began, Vice President Joe Biden traveled to Theodore, Ala., yesterday to assess efforts to counter the disaster.

During his visit, the Vice President [pictured above with Walt Dorn, of Patriot Environmental Services] toured the Theodore Staging Facility, met with response personnel, inspected boom, and participated in a roundtable discussion with fishermen and small-business owners from the area. He was joined by National Incident Commander Admiral Thad Allen and NOAA Administrator Dr. Jane Lubchenco.

Afterwards, the Vice President stressed the Administration’s commitment to restoring the Gulf Coast: "We’re not going to stop until this area -- all the entire Gulf -- has recovered; until the economy of the Gulf is revitalized and literally a way of life is restored," he said. "Because we’re not just talking about a natural ecosystem that’s in danger down here. We’re talking about an economic ecosystem.

"We’re also talking about a cultural ecosystem, a whole way of life. Whatever it takes to make this Gulf right, we’re going to make it right."

Approved SBA Economic Injury Assistance Loans Surpass $15 Million
To date, the U.S. Small Business Administration [SBA] has approved 181 economic injury assistance loans, totaling more than $15 million for Gulf Coast small businesses impacted by the Deepwater BP oil spill. Additionally, the agency has granted deferments on 707 existing SBA disaster loans in the region, totaling more than $3.7 million per month in payments.

For information on assistance loans for affected businesses, visit the SBA’s website at www.sba.gov/services/disasterassistance; call 800-659-2955 [800-877-8339 for the hearing impaired]; or e-mail disastercustomerservice@sba.gov.

Additional Resources
For information about the response effort, visit http://www.restorethegulf.gov/.

For specific information about the federal-wide response, visit http://www.whitehouse.gov/deepwater-bp-oil-spill.

SOURCES: U.S. Small Business Administration, Unified Command for the Deepwater BP Oil Spill, The White House [photo by David Lienemann]
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Landrieu, Melancon Urge Commerce Secretary to Provide Additional Aid for Gulf Coast Recovery Efforts

Yesterday, United States Senate Small Business Committee Chair Mary L. Landrieu [D-La., pictured] and Louisiana Rep. Charlie Melancon [D-Napoleonville] sent a letter to U.S. Secretary of Commerce Gary Locke, requesting that the Department of Commerce review several proposals that would spur business recovery in the wake of the Deepwater Horizon disaster.

"The Deepwater Horizon accident has had a profound impact on the economic viability of many of Louisiana’s businesses," said Sen. Landrieu and Rep. Melancon in the letter. "From shrimpers and oystermen, to restaurants, processing plants, and shipping companies, a significant portion of Louisiana’s businesses rely on the Gulf of Mexico for their livelihoods.

"With thousands of barrels of oil spewing into the Gulf every day, it is critical that we make use of every tool at our disposal to aid in the recovery efforts, and ensure that even more businesses, especially small businesses, are not adversely affected by the spill."

In their letter, Landrieu and Melancon requested that the Department of Commerce consider the following initiatives:

* Waive or Reduce Fees for Department of Commerce Export Assistance Programs: Temporarily waiving or reducing fees associated with the Department of Commerce export assistance programs could have an immediate impact on businesses. The International Trade Administration enacted a similar proposal following the 2005 hurricanes and, as a direct result of reduced fees, a significant number of Gulf Coast businesses were able to identify new export markets or attend foreign trade shows. Since 2005, Louisiana exports have increased by almost 69 percent -- the fourth highest rate of growth in the nation.

* Aid Gulf Coast Tourism-Related Business: Coordinate with local tourism partners on international press and travel trade familiarization tours. These types of tours help connect online and print reporters with local tourism boards and businesses to market U.S. destinations. Similar initiatives exposed Gulf Coast businesses and destinations to more than 1.3 million readers following the 2005 hurricanes.

* Host Department of Commerce Events in the Gulf Coast: Hosting meetings and activities in Louisiana would illustrate to prospective visitors that the Gulf Coast remains open for business. For example, the Department of Commerce is currently implementing provisions of the Travel Promotion Act of 2009, which will promote more international travel to the United States by creating a Corporation for Travel Promotion. The board of directors for this new corporation could host their first meeting in Louisiana.

* Conduct a Study on the Gulf Coast Tourism Industry: Studying the pace of recovery of Gulf Coast tourism will be key to identify successes and possible obstacles. A study from the Office of Travel and Tourism Industries at the Department of Commerce could identify the impact of Deepwater Horizon disaster on Gulf Coast tourism, how tourism is recovering, and any international marketing opportunities for Gulf Coast destinations.

The Department of Commerce today announced the U.S. trade deficit rose increased 4.8 percent to $42.3 billion -- the highest it has been since November 2008. While American businesses' exporting increased by 2.4 percent to $152.3 billion from their April 2010 level, imported goods and services rose by 2.9 percent to $194.5 billion.

Supporting the need for increased exporting opportunities, especially by small firms, the Department of Commerce noted that the overall U.S. trade deficit rose to $474.8 billion through May of this year -- up from $374.9 billion in 2009.

To view a copy of the Landrieu-Melancon letter to Locke, go to: http://bit.ly/LandrieuMelancon.

SOURCES: U.S. Department of Commerce, U.S. Senate Committee on Small Business & Entrepreneurship
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Louisiana Firm Retrofits Building for Hammond Bird Rehabilitation Facility

A Louisiana firm -- Pevey Construction LLC, of Ponchatoula -- has been selected to retrofit an existing building in Hammond, La., to become the new bird rehabilitation facility for the Unified Command's response efforts related to April's calamitous Deepwater Horizon oil spill. Work began on Monday, July 4, 2010, and major projects are expected to be completed in two to three weeks.

The Hammond bird rehabilitation facility, located in Tangipahoa Parish, will replace the Fort Jackson bird rehabilitation facility, in Plaquemines Parish. Hammond is outside of the three-phase hurricane evacuation zones, thereby minimizing the possibility of evacuations during the 2010 hurricane season -- which is already underway. All efforts are being made to complete the move to the Hammond facility before a hurricane requires an evacuation.

The new facility measures 30,000 square feet, and has the capacity to care for approximately 2,000 birds. It is located on an eight-acre campus with existing buildings in a quiet, nonresidential area.

The Fort Jackson facility in Buras, La., has more than met the needs of the Deepwater Horizon response efforts and the wildlife that has come into its care. That facility is located along the coast in a Category 1 hurricane evacuation zone, and could be subject to evacuation and damage from tropical storms or hurricanes. Plaquemines Parish will continue to be an important location for receiving, stabilizing, and transporting animals from impacted areas.

"The wildlife branch is grateful to Plaquemines Parish officials and residents for their assistance, and we appreciate their continued support as we move to a long-term facility outside of the hurricane evacuation area," said Rhonda Murgatroyd, owner and executive manager of Wildlife Response Services LLC, and BP's wildlife branch director. "We thank everyone in Plaquemines Parish and look forward to their continued assistance with the transportation and stabilization efforts."

While the Hammond bird rehab facility is not equipped to accept walk-in volunteers, those who wish to donate their time and expertise during the Deepwater Horizon response efforts can find opportunities online:
* Alabama: http://www.servealabama.gov/2010/default.aspx
* Florida: http://www.volunteerfloridadisaster.org/
* Louisiana: http://www.volunteerlouisiana.gov/
* Mississippi: http://www.volunteermississippi.org/1800Vol/OpenIndexAction.do

Key Contact Numbers
* Report oiled shoreline, or request volunteer information: [866] 448-5816
* Submit alternative response technology, services or products: [281] 366-5511
* Submit your vessel for BP's Vessels of Opportunity program: [866] 279-7983 or [877] 847-7470
* Submit a claim for damages: [800] 440-0858
* Report oiled wildlife: [866] 557-1401

For Additional Information...
* Download NOAA's "Hurricane Basics" handbook: http://hurricanes.noaa.gov/pdf/hurricanebook.pdf.
* Track developments in the federal government's inter-agency Deepwater Response Incident: http://www.restorethegulf.gov/.

SOURCE: RestoreTheGulf.gov
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Landrieu Letter to SBA Urges Support for Gulf Coast Small Businesses

United States Senator Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, today sent a letter to Small Business Administration [SBA] Administrator Karen Mills, highlighting several initiatives aimed at assisting small businesses being impacted by the Deepwater Horizon oil spill in the Gulf of Mexico.

"As I write to you today, Gulf Coast small businesses continue to struggle with the growing economic impact from the disaster," Landrieu stated in the letter. "This is because, in addition to the current six-month moratorium on deepwater drilling, there is a ripple effect of the multiple fisheries closures, as well as a slowdown in tourism due to the oil spill.

"Depending on the season, up to 40 percent of the nation’s commercial seafood harvest comes from the Gulf of Mexico. The tourism and fisheries impacts of the disaster threaten the continued viability of our Gulf Coast restaurants, ice houses, processors, grocery stores, and other small businesses."

In her letter, Sen. Landrieu requested the SBA turn attention to the following federal assistance programs:

SBA Disaster Loan Interest Relief
In total, there are over 12,000 disaster loans outstanding from the 2005/2008 hurricanes with businesses who employ about 40,000 people. Landrieu requests the Obama Administration’s support for interest relief of up to $15,000 on outstanding disaster loans from the 2005 and 2008 hurricanes.

This proposal, intended to inject immediate capital into these businesses, is supported by the U.S. Chamber of Commerce and numerous Gulf Coast local governments and organizations. It has also been endorsed by the New York Times and the New Orleans Times-Picayune newspapers.

Collateral on SBA Disaster Loans
To date, SBA has approved 52 Gulf Coast oil spill-related Economic Injury Disaster Loans totaling $2.2 million. SBA has indicated that it will accept the "best available" collateral from businesses seeking disaster loans. This collateral could include personal real estate, equipment, or business property.

Landrieu presses SBA to examine different types of collateral that could be used and to not further burden businesses that are now, in some cases, facing their second or third disaster since 2005. She also urges SBA to coordinate with BP for borrowers interested in putting up their BP claims as collateral towards these disaster loans.

Reimbursement from BP
The Oil Spill Liability Trust Fund, established by the Oil Pollution Act, is available to reimburse federal agencies for operations related to response and compensation provisions after an oil spill. The SBA has increased its staff by 125 employees to respond to this disaster, and set up 28 Business Recovery Centers in the Gulf Coast. Landrieu requests that SBA contact BP to receive appropriate compensation.

Similarly, as the SBA disburses Economic Injury Disaster Loans to businesses and fishermen in impacted states, the agency should also seek reimbursement from BP for these loan amounts.

Lastly, local Small Business Development Centers [SBDCs] are currently assisting businesses with both the BP claims process and SBA disaster loan process. Landrieu pushes for SBA, in coordination with the SBDCs, to seek compensation from BP for these services being provided as a result of the Deepwater Horizon disaster.

On May 27, 2010, the Small Business Committee held a hearing on the impact of the Deepwater Horizon disaster on Gulf Coast small businesses. In that hearing, the Committee heard from members of the U.S. Coast Guard and federal agencies on the claims process and assistance available to small businesses.

To date, the SBA has approved 52 Economic Injury Disaster Loans. BP indicated at that hearing that they had received over 26,000 claims -- of which 12,000 claims have been paid -- totaling $36 million. To view complete coverage of the May 27th hearing, please visit: http://bit.ly/OilSpillHearingSBC.

On Thursday, June 17th, the Committee will hold a hearing highlighting the contracting process for proposals for the oil spill cleanup. Live video from the hearing can be viewed at http://sbc.senate.gov/.

To view a copy of Landrieu's letter, please go to: http://bit.ly/LetterOilDisaster.

Resources
For information about disaster-related contracting possibilities, visit SBA's Disaster Contracting Assistance Center: http://bit.ly/DisasterDCAC.

To glean consolidated information about federally funded government assistance to help all disaster victims -- e.g., businesses, families, individuals -- visit the new, one-stop DisasterAssistance.gov website: http://bit.ly/DisasterAssistance.

Anyone with damages to their business or home resulting from a declared disaster can apply for financial assistance via SBA's Disaster Assistance Electronic Loan Application: http://bit.ly/DisasterAssistELA.

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SOURCE: U.S. Senate Committee on Small Business and Entrepreneurship
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Landrieu Letter to SBA: Support Small-Business Owners Impacted By Oil-Spill Disaster

Yesterday, United States Senator Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, sent the following letter to Karen Mills, administrator of the Small Business Administration [SBA], in support of small-business owners who may be impacted by the BP oil-spill disaster in the Gulf of Mexico.

* * *

April 30, 2010

The Honorable Karen G. Mills
Administrator
Small Business Administration
409 Third Street, S.W.
Washington, D.C. 20416

Re: Disaster Loans and Financial Relief for Small Businesses Impacted by the April 20th Deepwater Horizon Oil Spill

Dear Administrator Mills:

I write to urge the Small Business Administration [SBA] to make available as soon as possible SBA disaster loans and all other SBA assistance to small businesses in Louisiana impacted by the oil spill. This request is strongly supported by the Governor of Louisiana and other state leaders. In anticipation of a declaration, I ask that the SBA organize a lending briefing on the coast of Louisiana for the fishermen and other impacted businesses, and to coordinate with other federal agencies -- including the Department of Commerce [Commerce] and the U.S. Department of Agriculture [USDA] -- to make the recovery process as easy as possible.

As you know, a significant portion of my state’s businesses rely on the Gulf for their livelihoods, from shrimpers and oystermen to restaurants, processing plants, and shipping companies. With an estimated 5,000 barrels of oil a day spewing from the blown-out well underneath the Deepwater Horizon rig, it is urgent that SBA coordinate with the other agencies to assess the impact of the oil spill, issue the necessary declarations for businesses to access disaster loans, and make it as easy as possible for the harmed businesses to determine which agency will help them and how to apply.

Of particular concern is coordination between the SBA and USDA. In recent years -- for example, when Red Tide struck coastal communities in New England -- businesses have fallen through the cracks because SBA and USDA have not had clear policies about whether a fishing or shellfish entity is a business or a farmer, and therefore whether it is eligible for assistance through the SBA or the USDA. And, when it was eligible for assistance through the USDA, the assistance was more limited.

Following the 2005 and 2008 hurricanes, many Gulf Coast businesses also were deemed "too agricultural" for SBA and "not agricultural" enough for USDA, leaving them without sufficient disaster recovery assistance. I ask that you personally make sure that this process runs smoothly.

I also strongly support the State’s request to temporarily defer loan repayments for Louisiana coastal businesses that are impacted by the oil spill and have existing disaster loans, and am ready to help in any way to make that possible. To complement those deferrals, I ask for your support for legislation I have that would forgive a portion of the interest on outstanding disaster loans for businesses that are still struggling as Louisiana continues down the long road to recovery from the devastation of hurricanes Katrina, Rita, Ike and Gustav.

More specifically, S. 2986, the Southeast Hurricanes Small Business Disaster Relief Act of 2010, would create a program to waive up to $15,000 of interest on 2005 and 2008 small-business disaster loans. It would be available over a three-year period and have the effect of significantly lowering the monthly payments owed by small businesses, so that they would have needed capital to keep operating and retain employees.

Thank you, in advance, for your prompt cooperation on these requests. I look forward to working with you to make federal emergency assistance available as soon as possible to the businesses in my state.

Sincerely,

Mary L. Landrieu
Chair
U.S. Senate Committee on Small Business and Entrepreneurship

SOURCES: GovTrack, U.S. Senate Committee on Small Business and Entrepreneurship
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