Velazquez, Obama Cabinet Official Announce Loans for Sandy Survivors

$3.4 Million in Loans Made to New Yorkers in December, January

Washington, DC – Rep. Nydia M. Velázquez (D-NY-07) was joined today by U.S. Small Business Administration (SBA) Administrator Maria Contreras-Sweet in New York City where the two officials announced SBA disaster loans are once again available for businesses, renters and homeowners harmed by Hurricane Sandy. The program originally stopped taking applications in July of 2013, but many businesses and homeowners did not apply for help due to lengthy processing and other bureaucratic hurdles. Thanks to a new law, H.R. 208, authored by the Congresswoman and enacted in November, New Yorkers that have an unmet financial need from Hurricane Sandy now have until December 1, 2016 to apply for a disaster loan.

“While we have made significant progress in our recovery, many businesses and homeowners continue feeling economic and physical damages inflicted by Sandy,” Velázquez said. “By reopening the SBA’s disaster loan program and encouraging more businesses to apply, we can help our communities fully heal from this historic catastrophe.”

Administrator Contreras-Sweet stated, “The additional time for businesses, homeowners and renters to request federal disaster loans will go a long way in continuing to support the rebuilding efforts of the communities affected by Superstorm Sandy. I want to thank the Chairmen and Ranking Members of the Senate and House Small Business Committees for their leadership on this issue. I was pleased to join Rep. Velazquez in her district today to make sure those impacted by this disaster take advantage of this expanded opportunity. To date, the agency has received more than 1,000 applications. We have improved processing time on applications and, on average, provide a disaster loan decision in eight days and cash disbursement on average five days after receipt of loan closing documents. To date, we have approved $2.5 billion dollars in loan assistance to more than 37,000 individuals and businesses affected by Sandy.”

During the events held in Chinatown and Red Hook, it was announced that already $3.4 million has been lent to New York City businesses and homeowners since the program reopened in December. The SBA has also been working to reduce processing times for disaster loan applications with the average time now down to 11 days for businesses and 8 days for homeowners. Immediately following Sandy, a Government Accountability Office report requested by Velázquez found SBA was taking as long as 45 days to approve or deny some loan applications, suggesting the process has improved significantly.

“It is important New Yorkers know these resources are available,” Velázquez added. “If you are a business owner, renter or homeowner who gave up on the process previously, I suggest you reapply for assistance this year to be made whole.”

Under the SBA’s disaster loan program, renters, homeowners, businesses, and non-profits are all eligible to apply. Residents can receive up to $200,000 to repair physical damage -- and $40,000 to replace personal belongings. Businesses and non-profits are eligible for up to $2 million. Additional information on the SBA’s loan program can be found on the SBA’s website at: https://disasterloanassistance.sba.gov/

“The faster our businesses recover, the more quickly our City’s economy will fully come back from Sandy,” Velázquez concluded. “I urge all eligible New Yorkers – businesses, renters and homeowners alike – to look into this program and see if it is a good match for them.”

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