Hurricane Sandy: SBA Loan Approvals Surpass $1 Billion
Less than 90 days after Hurricane Sandy struck, the SBA said it approved more than $1.1 billion in disaster loans to 16,800 residents and businesses in the federally declared states affected by the storm.
The 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, the SBA said Monday.
In terms of SBA disaster lending, Hurricane Sandy is the third largest disaster in U.S. history, followed by Hurricanes Katrina/Rita/Wilma (August/September 2005, $10.8 billion) and the Northridge, Calif., earthquake (January 1994, $4 billion), according to the agency.
The SBA said it currently has a disaster staff of 2,400 supporting the Sandy response in New York, New Jersey, Connecticut, Rhode Island, Maryland, Virginia, North Carolina and Puerto Rico, as well as assisting in recovery efforts for other disasters nationwide.
According to the SBA, the supplemental appropriations included in that $799 million emergency relief package will be used in the following ways:
- $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, the agency said.
- $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 Sandy.
- $10 million for additional administrative expenses, which include IT security and financial management costs related to SBA’s Hurricane Sandy response.