House Approves Velazquez Legislation to Assist Sandy Affected Businesses

Washington, DC – The U.S. House of Representatives today approved legislation authored by Rep. Nydia M. Velázquez (D-NY) to improve the Small Business Administration’s (SBA) disaster lending initiative. Among other changes, the bill, H.R. 208, “The Superstorm Sandy Relief Act” would give firms impacted by Hurricane Sandy the opportunity to reapply for a disaster loan from the agency.

“After Sandy, many New York City businesses encountered enormous delays and red tape when trying to secure emergency loans from SBA,” Velázquez noted. “My bill would give New York businesses another chance to apply for assistance and will ensure SBA does a better job helping small firms after future catastrophes.”

After Hurricane Sandy, the Government Accountability Office (GAO), the SBA’s Inspector General and the Democratic side of the Small Business Committee produced analyses finding severe shortcomings in the SBA’s loan approval process. Among other problems, business owners had to wait on average 46 days for emergency loans to be approved.

“For a small business owner struggling to keep their doors open after a Hurricane or flood, waiting a month and a half for assistance is not an option,” Velázquez added. “These delays can make the difference between whether a business stays open or closes, costing our community badly needed jobs.”

Beyond reopening the loan application process, Velázquez’s measure would make a number of other changes to streamline SBA’s disaster response functions and enhance transparency. The agency would be required to report to Congress on its loan processing times and approval rates. It would also revise its disaster plan so adequate resources and staff are in place during future catastrophes. In addition, the measure would improve the SBA’s program that provides emergency loans to homeowners after disasters.

“When a hurricane, tornado, or earthquake strikes, businesses owners’ and homeowners’ lives are literally turned upside down,” Velázquez concluded. “It is my hope that the legislation before us creates a more responsive SBA – one that is able to rise to the challenge when the next disaster strikes.”

The legislation passed the House on a bipartisan basis. It must now be considered by the U.S. Senate.
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