Hurricane Sandy NJ Congress makes additional funds available for recovery

Congress makes additional funds available for recovery

WASHINGTON, D.C. – Ninety 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 Jan. 30 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.

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.

According to SBA New Jersey District Director Al Titone, the agency has approved 4,894 Sandy disaster loans throughout New Jersey for $344 million.

Of that total, 4,578 loans went to New Jersey homeowners and renter for $311 million. A total of 316 loans went to businesses for a total of $33 million.

In terms of SBA disaster lending, Hurricane Sandy is the third largest disaster in U.S. history, followed by Hurricanes Katrina/Rita/Wilma (Aug./Sept. 2005, $10.8 billion) and the Northridge (Calif.) earthquake (Jan. 1994, $4 billion).

The SBA currently has a disaster staff of 2,400 supporting the Hurricane Sandy response in seven states (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.

For more information about SBA’s disaster loan program, see www.sba.gov/sandy, call the Disaster Customer Service Center at             1-800-659-2955       or email disastercustomerservice@sba.gov .