As residents recover from the effects of a massive natural gas leak at the Aliso Canyon natural gas storage facility in Southern California, the U.S. Small Business Administration (SBA) continues to offer assistance to affected businesses. To date, SBA has approved 13 disaster loans, totaling $826,700, to help small businesses with working capital needs. Businesses affected by the leak can still apply for an economic injury disaster loan, if needed.
The Economic Injury Disaster Loan (EIDL) Program can provide up to $2 million of financial assistance to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage.
The EIDL assists businesses with financial obligations that otherwise could have been met had the disaster not occurred and also provides relief from economic injury caused directly by the disaster. EIDLs do not replace lost sales or revenue.
“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact,” said Victor Parker, SBA’s Los Angeles District Director. “Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
The deadline to apply for an economic injury disaster loan is Nov. 8, 2016.
Governor Edmund G. Brown Jr. declared the prolonged Aliso Canyon gas leak a state of emergency on Jan. 6, and SBA declared it a disaster following a request received on Feb. 3 from Mark Ghilarducci, Director of the California Governor’s Office of Emergency Services (Cal OES). The disaster declaration allowed SBA assistance available in Los Angeles County and the neighboring Kern, Orange, San Bernardino and Ventura counties.
“SBA is committed to supporting those who are working to restore the economic livelihood of the people in Porter Ranch and the surrounding area,” said SBA Administrator Maria Contreras-Sweet.
Click here to find out more about SBA programs.