Bills
| 3.23.22

Do Superstorm Sandy Survivors Need a Loan Program to Rebuild Businesses and Homes? (H.R. 208)

Do you support or oppose this bill?

What is H.R. 208?

(Updated October 12, 2017)

This bill was enacted on November 25, 2015

This bill would require the Small Business Administration (SBA) to establish a loan program for small businesses, homeowners, or renters that were located within the declared major disaster area during 2012's Superstorm Sandy. 

Superstorm Sandy — affected 24 U.S. states but was primarily focused on the northeastern states — caused 160 deaths and about $75 billion in damage. It was the deadliest hurricane to hit the northeastern U.S. in 40 years, and caused the second-most damage only behind Hurricane Katrina.

Loans under this bill would be available to qualified applicants for the following purposes:

  • Repairing, rehabilitating, or replacing property damaged or destroyed because of the storm;

  • Assisting a small business that suffered substantial economic injury because of the storm.

The loan program would be available for at least one year, and would also fund projects to enhance public safety in the event of another severe storm, like:

  • Building retaining walls and seawalls;

  • Grading and contouring land;

  • Relocating utilities and modifying structures to protect property or occupants.

Disaster response plans by the SBA would be revisited to improve how the Administration handles a sudden influx of loan requests in a disaster-affected area. The SBA would also have to report to Congress about loan processing times and approval rates.

Argument in favor

SBA loans are a good way to allow businesses and homeowners whose properties were damaged by Superstorm Sandy to rebuild without the federal government just offering handouts and throwing money at the problem.

Argument opposed

Superstorm Sandy occurred in 2012 — nearly three years ago. This may have been a worthwhile idea a few years ago, but now many of those that would’ve benefitted from the loans are back on their feet.

Impact

People and business owners who were affected by Superstorm Sandy that would apply for the loans, the SBA, and Congress.

Cost of H.R. 208

A CBO cost estimate is unavailable.

Additional Info

Of Note: 

In January 2013 the 113th Congress enacted the Hurricane Sandy relief bill which raised the amount of funding available to the Federal Emergency Management Agency (FEMA) from $20.7 billion to $30.425 billion. However, that legislation did not have any provisions related to financing the rebuilding of homes and businesses.


In-Depth: In explaining her legislation, sponsoring Rep. Nydia Velazquez (D-NY) said: 

“It is clear the SBA was caught flat-footed by Hurricane Sandy. Reopening the loan approval process will give entrepreneurs still reeling from Sandy another chance to access emergency capital, keeping their doors open, employees on their payrolls and helping them perform needed repairs.”

According to a Government Accountability Office (GAO) report, business owners had to wait an average of 46 days after Superstorm Sandy for emergency loan applications to be approved.

This bill was passed by the House Small Business Committee via voice vote.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user The National Guard)