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The rule change makes it easier for dealers in heating oil and liquid propane to get SBA loan guarantees. This is critical because the recent astronomical increases in energy prices could make it difficult for dealers to buy oil “up front” from wholesalers. If dealers cannot buy inventory they cannot make their retail deliveries, derailing a system that serves more than 682,000 residential customers in Connecticut. Governor Rell last week urged the SBA to take final action on the rule change, which had been pending for many months. An announcement was published today in the Federal Register - the government’s official daily publication for rules and rule changes, regulatory notices and other agency information – and takes effect August 21. “This is good news not only for the dealers, who could have faced a real cash flow challenge, but for their customers as well,” Governor Rell said. “Because heating oil is so expensive – the current price is about $5 a gallon and that may increase further – this winter is going to strain the budgets of Connecticut home- and business owners to the limit. We certainly did not need to risk of dealers going out of business to complicate matters further. With these guarantees, qualifying dealers will keep the oil flowing steadily from the producer to the public. “I thank the SBA for taking this action,” the Governor said. “It is one more element in our broader plans to help Connecticut deal with financial burden this winter. Yesterday, I announced that state government ended the 2008 fiscal year on June 30 with a small budget surplus of about $22.3 million. I am asking the Legislature to join me in dedicating that money to heating assistance for this winter. “We expect the demand for help from services like the Connecticut Energy Assistance Program and ‘Operation Fuel’ is going to be enormous, with requests coming from people who have never before had to ask for assistance,” Governor Rell said. “The heat and humidity today may make it hard to think about November’s bitter winds, but we must start saving now to deal with this coming problem.” The Governor is calling for a special session of the General Assembly to approve using the Fiscal 2008 surplus for energy assistance and to consider other ideas for helping residents and businesses this winter. The Governor’s Administration has been working with community groups and others to develop a variety of programs, while lawmakers have said they intend to offer additional proposals. Governor Rell has also urged Congress to increase the amount of federal funding for the Low Income Home Energy Assistance Program (LIHEAP), the primary funding source for CEAP. In order to deliver the same amount of fuel as in 2005-06, LIHEAP funding for New England states would need to be increased to $430 million, an increase of 61 percent over last year’s budget. Under the rule change, the SBA will define “small” dealers as companies with 50 employees or fewer. The previous standard had been based on a company’s annual receipts, defining small dealers as those with average annual receipts of $11.5 million or less. Given the fluctuations in oil prices, many companies could have exceeded that standard and found they no longer qualified for the guarantees. © Copyright by StamfordPlus.com. Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of StamfordPlus.com, Stamford Plus magazine, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. Related Articles: Head for The Litchfield Hills to celebrate a worldwide wine tradition - Sep 4, 2008 - 4:07:03 PM Quinnipiac University Democrats save lives by providing a water buffalo to a poor country - Sep 4, 2008 - 11:29:11 AM Curb appeal - Aug 29, 2008 - 2:03:02 AM Art and history at the Rowayton Arts Center - Aug 29, 2008 - 1:21:29 AM Multi-state suit against EPA for failing to regulate global warming pollutants from oil refineries announced - Aug 25, 2008 - 11:12:05 PM CURRENT HEADLINES: Top of Page
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