Senate passes new SBA Sandy relief bill

The Senate unanimously passed the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 to extend, expand and improve access to federal disaster loans through the U.S. Small Business Administration (SBA). Senator Bob Menendez of New Jersey wrote the act in response to findings by both the Government Accountability Office and the SBA Inspector General’s Office that the SBA failed to meet timeliness and accuracy standards when responding to Hurricane Sandy.

As Sandy survivors continue to wait for New York Rising rebuilding grants and full flood insurance payouts, they will know that low-interest loans will be available to fill any remaining unmet needs. Along with Menendez, Senators Cory Booker also of New Jersey, and Chuck Schumer and Kirsten Gillibrand of New York cosponsored the measure. A similar companion bill has passed the House of Representatives.

The program reopens Sandy disaster assistance applications for Sandy survivors who did not apply for disaster loans, due to: inaccurate information, a preference for grants, duplication of benefits concerns, etc.  Many others believed their flood insurance proceeds and federal grants would address their unmet needs, but now find they do not have the resources to rebuild.  The bill requires SBA to reopen the Sandy disaster assistance loan program for one year.

It allows for the construction of so-called “safe rooms”. In the past the use of physical damage loans to mitigate future damages from disasters was limited to protection of property.  This section expands the permitted uses of physical damage loans to include safe rooms to protect from tornadoes.

Many delays in obtaining SBA loans were caused by applicants being unable to submit required documentation. Although many people lost required documentation as a result of the flooding, there has been sufficient time to recover more than was available right after the storm. This act now informs applicants that delays can be avoided by having all required materials submitted initially.

In response to long application processing times, the SBA is required to revise its disaster response plan and develop plans to better deal with sharp increases in applications.

“We need to do everything we can to help those who are still struggling to recover nearly three years after Superstorm Sandy and I’m incredibly pleased this bill has passed the Senate and is one step closer to becoming law,” said Sen. Menendez.  “I crafted this bill because providing access to much needed capital through low-interest loans will allow homeowners to rebuild, and businesses to stay open and keep their workers on the job, while repairs and resiliency upgrades are completed.”