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Congressman Sherman Seeks SBA Loans for Businesses Affected By Gas Leak

January 13, 2016

Urges Governor to Request Assistance

Washington DC –Congressman Brad Sherman (D-Sherman Oaks) urged that businesses near the Southern California Gas Co.’s (SoCalGas) leak be made eligible for Economic Injury Disaster Loans from the Small Business Administration (SBA). These loans would provide relief for businesses who incurred economic losses as a result of the gas leak.

“SoCalGas should be solely responsible for the costs associated by this leak, but federal assistance should be made immediately available to the affected businesses,” said Congressman Sherman. “The SBA can help alleviate some of the financial hardship with loans on favorable terms. Retail establishments and home-based businesses alike suffer because of the leak. I have talked to several residents who were forced to shut down their home-based business as a result of the evacuation.”

The decision to make this area eligible for loans is made by the SBA, but must come at the request of Governor Jerry Brown. In granting eligibility for these loans, the SBA can provide loans on favorable terms to affected businesses. These loans may have terms up to 30 years, with interest rates below 4 percent, designed for working capital.

“I believe that many businesses have suffered substantial economic harm. Any business may have difficulty meeting its obligations when its customers disappear as a result of an environmental health disaster. This is especially the case when those businesses were already struggling before the leak.”

See Congressman Sherman’s full letter the Governor Jerry Brown here: