Locals affected by an oil spill off the coast of Orange County earlier this month could be eligible for low-interest loans from the federal Small Business Administration.
The agency declared the county an official disaster area on Wednesday, triggering requisite conditions for residents to receive federal financial assistance.
The SBA disaster loans are aimed at helping small businesses and nonprofits affected by disasters. Qualified borrowers can get up to $2 million to cover operating costs like payroll and rent, with repayment plans of up to 30 years at fixed interest rates of up to 4%.
Residents had hoped for a broader federal disaster designation by the agency, as it would allow for local businesses to resume operations and recoup lost funds quicker. It is likely the Biden administration held back from a federal disaster designation in part because federal law requires oil spills be cleaned up by oil companies, not paid for by U.S. taxpayers.
SBA loans stemming from the spill will also be available to impacted residents of Los Angeles, San Diego, Riverside, and San Bernardino counties.
Applicants can apply online at DisasterLoanAssistance.sba.gov.
Gov. Gavin Newsom praised the SBA’s move on Wednesday.
“California is committed to supporting the communities and local economies that have been affected by this spill and we thank the Biden administration for this assistance to help impacted businesses get back on their feet,” he said in a statement. “We’ll continue to coordinate with federal, state and local partners to ensure the recovery of this vibrant region.”
Loans are expected to be offered over the next nine months.
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