SBA declines 70 percent of Louisiana businesses applying for oil spill loans, state complains | WHAT REALLY HAPPENED


SBA declines 70 percent of Louisiana businesses applying for oil spill loans, state complains

In an eerie repeat of difficulties after Hurricane Katrina, the Small Business Administration is turning down more than two-thirds of Louisiana companies seeking Gulf oil spill relief loans, according to a top state official's complaint to the federal agency Thursday.

Louisiana Economic Development Secretary Stephen Moret sent a letter to SBA Administrator Karen Mills complaining that the SBA is using its normal loan approval processes even though the circumstances are extraordinary, and that the agency is turning down far too many Louisiana businesses because of "credit concerns" or because they can't prove they'll be able to repay quickly.

Moret wrote that hundreds of the 21,000 claims filed with BP for losses due to the oil spill come from struggling small businesses, and most of them need the SBA loans to carry them through until they receive payment from BP.

Webmaster's Commentary: 

Unflipping believable!

One has to wonder if the federal government is betting against any real BP compensation of damage claims, which is why SBA is rejecting these loans.

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