Kenneth Feinberg, the administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund, outlined the process for reimbursing business owners hit hard by the oil spill in the Gulf Coast during his testimony Wednesday before the House Small Business Committee.
Mr. Feinberg said there are two important prerequisites for securing compensation through the fund.
“One, is the claim eligible, is it even appropriate to file a claim. Even if you have an eligible claim, corroborate it. You have to corroborate your claim. You can’t come in and say ‘I’m out of work,’ ‘I’m losing $5 thousand a month, pay me.’ Show me you are out of work,” said Feinberg.
Rep. Vern Buchanan (R-Fla.) asked what can be done for motel and restaurant owners who live in his district, where no tar balls have rolled up on the beaches, but because of perception tourism is down 50 percent.
“This is a very tough issue, I mean there is not enough money in the world to pay every single small business that claims injury no matter where or when,” Feinberg responded.
Feinberg will draw from $20 billion escrow fund established this month to offer small businesses long-term lump sum payments instead of month-to-month emergency payments. There are currently 35 claims locations located in the Gulf Coast Region. Claims can also be filed online.
“I welcome and urge all eligible claimants to file a claim with this facility that has been established under my direction,” Feinburg said. “Anybody, any private individual, or company who feels that they have a valid claim to draw out of this facility, should file a claim.”