Superstorm Sand Relief and Disaster Loan Program Improvement Act of 2015

Floor Speech

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Ms. VELÁZQUEZ. 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.

Mr. Speaker, 32,000 New Yorkers lost their jobs that November, losses many economists attribute to the storm's economic impact. After disasters like these, it is not uncommon for as many as 40 percent of impacted small businesses to fail, depressing commerce and slowing the overall community's recovery.

The Small Business Administration's disaster lending functions are meant to provide quick credit to small firms 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 after Hurricane Sandy that there is still more work to be done. The Government Accountability Office, the inspector general, and reports from Small Business Committee Democrats have all documented long delays in the processing and disbursement of loans.

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.

Mr. Speaker, H.R. 208 takes steps to address these shortcomings and ensure those affected by Hurricane Sandy are treated fairly. To begin, the bill would allow small 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.

The bill would also correct a number of the shortcomings that have held back the SBA's programs from functioning smoothly. Businesses will 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. By reducing closing and disbursement delays, H.R. 208 would ensure funds flow more swiftly to businesses after future catastrophes.

Lastly, the measure takes steps to require SBA to implement reforms Congress passed following Katrina. The fact is the agency has been woefully slow in making these changes, and this law will help hold it accountable.

Mr. Speaker, our small businesses are counting on the SBA in times of crises to provide badly needed help so they can recover quickly and continue supporting our local economies. This legislation, which enjoys bipartisan support, will help improve that process, and I urge my colleagues to support it.

Mr. Speaker, when disasters strike, getting small businesses back on their feet quickly can help local economies recover. For that to happen, the SBA's disaster lending initiatives must work as intended, providing American capital to firms that have suffered physical and economic damage.

The legislation we are considering would allow businesses that encountered delays to reapply for assistance and be made whole. It will improve how the agency functions in the future, speeding help to small businesses and homeowners when they are most in need.

Mr. Speaker, this is a bipartisan bill, and it will do much good for entrepreneurs impacted by Sandy and for businesses impacted by future disasters. I thank Chairman Chabot for his support on this legislation.

I encourage my colleagues to vote ``yes,'' and I yield back the balance of my time.

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