Congressmen Adam Putnam (R-Fla.) and Charles Boustany Jr. (R-La.) today introduced legislation to aid small businesses and families affected by the BP Deepwater Horizon oil spill in the Gulf.  Their measure would allow some to withdraw funds from retirement savings accounts without paying a penalty.

“Though many beaches and fishing waters remain open and unaffected by the oil spill, the perception of oil soaked beaches is driving tourism away, placing an additional burden on the people of the Gulf states who are continuing to struggle in this deep economic recession,” said Putnam. “This is particularly disturbing given Florida’s current 11.7 percent unemployment rate, struggling housing market, and that Florida’s tourism industry accounts for $60 billion in annual revenue and provides for nearly one million jobs that cater to tourists.”

The Gulf Coast Access to Savings Act would allow for withdrawals up to $50,000 from retirement plans without penalty.  The legislation aims to assist those individuals and small businesses that are affected by the oil spill and unable to secure a loan due to restricted lending or that may need to access their retirement plans in order to make payroll or stay afloat.

“Thousands of families along the Gulf struggle to cope with this oil spill, so allowing them to use their savings for short-term help makes sense,” said Boustany.  “Each day, I hear from people across Louisiana who find themselves in financial trouble because of the spill.”

The Gulf fishing industry, including seafood processing and related wholesale and retail businesses supports over 200,000 jobs with related economic activity of $5.5 billion.  In May, Moody’s warned that Florida’s GDP could be hit by a half-billion in the fourth quarter of this year and will lose more than 9,000 jobs because of the spill.  Most recently, research from the University of Central Florida’s (UCF) Institute for Economic Competitiveness shows that the spill could end up costing Florida 195,000 jobs and $10.9 billion in spending.  Conservative estimates have Florida losing at least 39,000 jobs and $2.2 billion in revenue and 39,000 jobs.

“The economic impact from the oil spill could delay Florida’s recovery from the current recession.  Given the potential long-lasting consequences, we must ensure our businesses located along coast-lines or that provide services to businesses on the coast have the ability to ride out the crisis.”

Since 2001, Putnam has represented Florida’s 12th Congressional District, which includes most of Polk County and portions of Hillsborough and Osceola counties.