Letter to Maria Contreras-Sweet, Administrator of the United States Small Business Administration - Western New York Snowstorms

Letter

Dear Administrator Contreras-Sweet:

We write to you regarding the recent severe snow storms in Western New York and ask for your assistance in aiding the affected communities.

On November 18, 2014, New York State declared a state of emergency for several Western New York counties in response to one of the worst snow storms the region has ever experienced. Areas around the city of Buffalo are still covered in snow, trapping some people in their homes. Many small businesses have been shut down for nearly a week and recently the weight of the over 6 feet of snow in some locations is caving in roofs, destroying personal property, and endangering lives. Soon, the inevitable warming of the area is almost certain to cause flooding of historic proportions, causing further damage and harm to a shocked community.

It is for these reasons, in the most dire of circumstances, that we ask for the Small Business Administration (SBA) to prepare to aid this community in the near future by offering low-rate loans to persons who are not fully covered by private insurance policies. As the total snow and flooding damage is assessed by state and federal officials, we fully anticipate a Presidential-level disaster declaration facilitating Federal Emergency Management Agency (FEMA) support. It is imperative that the SBA act now to ensure loans and disaster response procedures are prepared and also that the SBA be ready to make its own agency-level disaster declaration, should the need arise.

We anticipate that damages from the storm will hit the level needed for the state to request an SBA physical disaster declaration, which is triggered when the physical damage to 25 homes or businesses is in excess of 40% of the uninsured value of the property. If this threshold is reached, SBA will be able to provide qualified recipients with low interest loans of up to $40,000 to renters and homeowners to replace personal property; up to $200,000 to homeowners to repair or replace damaged homes; and up to $2 million to business owners to repair damaged businesses.

Thank you for your immediate consideration. The people of Western New York cannot wait to begin applying for low-rate direct loans from the SBA as they begin the rebuilding process before this holiday season.

Sincerely,

U.S. Senator Charles E. Schumer

U.S. Senator Kirsten Gillibrand

Representative Chris Collins

Representative Brian Higgins