Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015

Floor Speech

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Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, when Hurricane Sandy made landfall in 2012, New York City was one of the hardest hit areas. Thousands of homes suffered damage, infrastructure was disrupted, and our city's small businesses were impacted physically and economically.

After a disaster like this, it is not uncommon for as many as 40 percent of impacted small businesses to fail, depressing commerce and slowing the community's recovery.

The Small Business Administration's disaster lending functions are meant to provide quick credit to small businesses and homeowners that have been impacted by catastrophes.

With entrepreneurs' and homeowners' livelihoods at stake, it is vital that the SBA's disaster programs operate effectively. That is why in 2008, after Katrina, Congress passed reforms meant to improve SBA's disaster response.

It became evident following Hurricane Sandy that there is still much work to be done. The Government Accountability Office, the inspector general, and Small Business Committee Democrats have all documented shortcomings in SBA's administration of the disaster loan program.

Our committee found, for instance, that small businesses waited 46 days to get their application processed by SBA, a threefold increase over previous Atlantic storms. The IG found the agency lacked clear guidance which resulted in confusion for borrowers, inconsistent application of underwriting criteria, and loans going to ineligible entities.

H.R. 208 addresses these shortcomings and ensures those affected by Hurricane Sandy are treated fairly. To begin, the bill would allow businesses to apply again for loans. As SBA was so unprepared for a disaster of this scale, it is important that those impacted have another chance at securing assistance.

This bill would also correct many of the problems identified by the IG. SBA will be required to provide up-front notification to borrowers on necessary documentation as well as establish clear written policies for loan officers. By clearing up confusion for both borrowers and SBA staff, H.R. 208 will ensure funds flow more swiftly to businesses after future catastrophes.

Lastly, the measure incorporates a number of bipartisan reforms from our Senate colleagues. Under these provisions, for instance, businesses would no longer be prohibited from posting their assets as collateral. This is important as, previously, many entrepreneurs have had to use personal assets for loan collateral.

Mr. Speaker, this is a truly bipartisan, bicameral effort that focuses on better assisting small businesses impacted by natural disasters.

I want to thank Chairman Chabot for his leadership and support on this legislation. I also wanted to thank Chairman Vitter, Ranking Member Shaheen, and Senators Menendez and Booker for their hard work in crafting this bill.

I urge my colleagues to support it.

I reserve the balance of my time.

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