US board backs first oil loans

The US Emergency Oil and Gas Guaranteed Loan Board has approved its first two loan applications. The board will back a loan of $475,000 by the First National Bank of Midland, Tex., for CB Partners, Midland. It also will guarantee a loan of $2,750,000 by the Bank of the Southwest for Strata Production Co., Roswell, NM.

Jul 15th, 2000


Washington, DC�The US Emergency Oil and Gas Guaranteed Loan Board has approved its first two loan applications.

The board will back a loan of $475,000 by the First National Bank of Midland, Tex., for CB Partners, Midland. It also will guarantee a loan of $2,750,000 by the Bank of the Southwest for Strata Production Co., Roswell, NM.

Congress created the board in August 1999 to help producers finance oil and gas projects. The federal government will guarantee 85% of a qualifying bank loan for a producer. Individuals or firms can borrow up to $10 million each, until the program's portfolio totals $500 million.

Only 23 loan guarantee applications totaling less than $68 million were filed by the deadline earlier this year. The board said those remaining applications are still under consideration.

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