Less than 90 days after Hurricane Sandy struck, the U.S. Small Business Administration has approved more than $1.1 billion in disaster loans to 16,800 residents and businesses in the federally declared states affected by the storm. This milestone comes as Congress passed emergency legislation that will add $799 million to SBA’s disaster assistance program budget to help meet the demand for loans from Hurricane Sandy and future disasters.
“Getting money into the hands of individuals and businesses in the aftermath of Hurricane Sandy continues to be one of our top priorities,” said SBA Administrator Karen G. Mills. “My pledge to those affected by the hurricane is that SBA, working together with our local and federal partners, will help you rebuild. I am pleased Congress took the important step of appropriating much-needed funds to help us keep our promise.”
Here’s how the supplemental appropriations will be used:
- $520 million for disaster loan subsidy costs, which would support $5 billion in SBA low-interest disaster loans to homeowners, renters, businesses and non-profit organizations;
- $249 million to cover the administrative costs of SBA disaster loan making and servicing;
- $20 million to support SBA’s resource partners—the Small Business Development Centers, SCORE, Women’s and Veterans Business Development Centers—as they provide assistance to businesses rebuilding in the aftermath of Hurricane Sandy;
- $10 million for additional administrative expenses, which include IT security and financial management costs related to SBA’s Hurricane Sandy response.
“In terms of SBA disaster lending, Hurricane Sandy is the third largest disaster in U.S. history – only Hurricanes Katrina/Rita/Wilma in 2005 and the 1994 Northridge, California earthquake required more SBA disaster lending,” said Regional Administrator Natalia Olson-Urtecho. “Here in the Mid-Atlantic region disaster declarations in Maryland and Virginia can help small business owners and residents as well as in New York, New Jersey, Connecticut, Rhode Island, North Carolina and Puerto Rico.”
SBA currently has a disaster staff of 2,400 supporting the Hurricane Sandy response in seven states and is assisting in recovery efforts for other disasters nationwide. For more information about SBA’s disaster loan program, visit www.sba.gov/sandy, or call the Disaster Customer Service Center at 1-800-659-2955.
