Senate Panel Clears Legislation to Assist Sandy-Affected Businesses

Washington, DC –The U.S. Senate Committee on Small Business and Entrepreneurship today approved legislation to assist small businesses impacted by Hurricane Sandy. The bill, S. 1811, is largely based on a measure authored by Rep. Nydia M. Velázquez (D-NY) that was approved by the U.S. House in July. Both bills would make a number of improvements to the Small Business Administration’s (SBA) disaster lending initiative. Most notably, these measures would give firms impacted by Hurricane Sandy the opportunity to reapply for a disaster loan from the agency.

“In the wake of Sandy, many businesses encountered seemingly endless red tape and delays when applying for emergency loans from the SBA,” Velázquez noted. “This legislation would reopen the process and help entrepreneurs still struggling from the effects of Sandy secure financing to aid in their recovery.”

Following Sandy, Velázquez helped spearhead a number of investigations examining the SBA’s response to the storm. Reports produced by Democrats on the House Small Business Committee and the Government Accountability Office (GAO) identified numerous problems with the SBA’s disaster lending functions. Among other issues, business owners had to wait 46 days on average for 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.”

The legislation passed by the Senate Small Business Committee was sponsored by U.S. Senator Robert Menendez (D-NJ) and includes amendments authored by Senators David Vitter (R-LA) and Cory Booker (D-NJ). In addition to reopening the application period for disaster loans, both Velázquez’s bill and the measure approved today would make significant reforms to how the SBA’s emergency lending functions will operate in the wake of future catastrophes. The Senate measure will now need to be considered by the full U.S. Senate. If approved by that body, it would require final consideration in the House.

“I’m pleased to see the Senate take proactive steps to address this longstanding problem and thank Chairman Vitter and Ranking Member Shaheen for their leadership,” Velázquez added. “Both the House and the Senate have now moved to reform SBA’s disaster lending program and reopen the loan process for Hurricane-impacted firms. It’s my hope that we can work swiftly to get final legislation to the President’s desk.”

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