Letter to the Hon. Linda McMahon, U.S. Small Business Administration - Velázquez Seeks Answers on Unfulfilled Disaster Loan Program

Letter

Dear Administrator McMahon:

As you know in recent weeks, our country has experienced unprecedented natural disasters in the form of Hurricanes Harvey and Irma. Our federal government must utilize all methods available to ensure it is helping citizens quickly recover from these disasters.

The Recovery Improvements for Small Entities After Disaster Act of 2015 (RISE Act) created the Recovery Opportunity Loan Program under SBA Express which would provide loans up to $150,000 to disaster survivors from private lenders. Section 2106 required SBA to promulgate rules to carry out this loan program no later than 270 days after enactment of the RISE Act--by August 21, 2016.

An SBA notice from August 2016 indicated the agency's intent to issue regulations, however they have yet to be promulgated. According to SBA's FY 2018 Congressional Budget Justification, regulations are scheduled to be issued by September 30, 2018, over two years after the required timeframe.

Given the importance of providing small businesses and homeowners such assistance post-disaster, I am writing to request information on the status of the regulations. Please provide an explanation on why the regulations have yet to be promulgated, an updated timeframe for promulgation, and details on the number of staff and resources devoted to this effort.

I look forward to your timely response.

Sincerely,


Nydia M. Velázquez
Ranking Member

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