Graves Interviews SBA Official to Broadcast Availability of Disaster Loans

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A Louisiana U.S. congressman held a live Facebook meeting with the Small Business Administration regional director to broadcast options SBA was offering in this viral disaster situation.


 

Congressman Garret Graves, R, of the 6th District of Louisiana met with SBA Regional Director Justin Crossie, region 6 includes Louisiana, Arkansas, New Mexico, Oklahoma, and Texas, to discuss available loans to help small business owners through the financial hardship caused by the novel coronavirus, Covid-19, Wednesday, March 18. The discussion was broadcast through Facebook Live to about 400 viewers.

 

“We are here to lend financial assistance to the small businesses community to help them make it through and enter the recovery stage which is hopefully right around the corner,” said Crossie.

 


 

Typically SBA will step in to lend recovery assistance to natural disasters such as tornadoes, fires, earthquakes and the like. The governor of a state declares an area of their state impacted by a disaster. The request for assistance made by the governor is then reviewed by an administrator at the SBA and is either approved or denied.


 

According to Crossie, the declaration, and request, has been made by Louisiana Governor John Bel Edwards, has been approved by the SBA and the process’s completion is “imminent.”

 

“Louisiana has been declared and the disaster benefits will become available,” Crossie said.

 


 

This would mean low interest loans would become available to impacted businesses in the declared area, “in this case we are talking nationwide – every parish in the state would be eligible.” Up to $2 million dollars in assistance could be provided for temporary loss of revenue that’s being experienced during this pandemic, said Crossie. SBA offers extended payment periods, of up to 30 years, “and again this is on a case-by-case basis,” he said.


 

“You could pay fixed debts, payroll accounts payable, other bills, again stuff that you’re not able to cover right now because of loss of income that businesses are experiencing,” explained Crossie.

 

Historically, what is required is 5 small businesses in the state would need to be impacted. Then depending on where the businesses are located, those parishes become eligible.

 


 

“What is unique about this situation is that the President has really gone out and asked that we take a look at this from a whole government standpoint, and a whole government effort response and helping this nation through this troubled time,” said Crossie.


 

The SBA has used the disaster declaration in a unique way, said Crossie, in that it has modified the criteria in the state. If the state qualifies this time, instead of affecting the particular parishes, the entire state will become eligible for assistance.

 

While the process to free up disaster loans for Louisiana is still being completed, Crossie said there are already resources available, “right now, regardless of the imminent approval, the SBA has resources year round,” he said. These resources can be found at www.sba.gov.

 

Crossie explained that while not mandated, if someone currently has a disaster relief loan – for instance from the 2016 flood – which they are paying off, the SBA has allowed the payments to be deferred for up to 6 months, “If you currently have an SBA loan, you can ask your lending institution to defer your payments for 6 months,” he explained.


 

“While we as the SBA cannot dictate to the bank, ‘hey go and do this,’ we’ve made that tool available to the banks,” he said. “So if you have an SBA loan currently you have to go ask your lending institution to give the approval.”

 

For more information about the disaster resources available once Louisiana is approved, go to www.sba.gov/disaster, or call 1 (800) 659-2955.