WASHINGTON, May 8 /PRNewswire/ -- With processing completed on more
than 96 percent of applications for rebuilding loans after Hurricanes
Katrina, Rita and Wilma devastated the Gulf Coast and Florida, the U.S.
Small Business Administration has approved over $9 billion in financing to
the small businesses, homeowners and renters who were victims of the
largest disaster in U.S. history.
The record loan volume over the last eight months is more than double
what was provided in the agency's previous record disaster response, the
Northridge earthquake in 1994, in which $4 billion in loans were made over
a 12-month period.
"We've pledged to stay on the job until it's completed, and that's what
we're doing," said SBA Administrator Hector V. Barreto. "This has been an
agency-wide effort with thousands of SBA personnel working tirelessly,
urgently and with compassion to help the victims of these devastating
storms, and I'm proud to say that very soon we will complete processing on
virtually all of the applications submitted to us.
"The challenges and obstacles for small businesses continue to be
significant in the affected areas," Barreto noted. "Not only do they have
to rebuild their facilities and communications networks, but they also have
to recover records, find and hire employees, reestablish a client base, and
acquire inventory. Still, in New Orleans, as many as half of the residents
haven't returned, and there are literally tens of thousands of people who
have been approved for loans but haven't decided whether to accept them or
not.
"We continue to urge everyone whose loan application has been approved
and is ready to start the rebuilding process to call our Customer Service
Center at 1-800-659-2955 or e-mail us at disastercustomerservice@sba.gov
and arrange for a loan closing. We want to get this money into the hands of
the people in the disaster areas as fast as we possibly can."
The application deadline for loans to repair physical damage has
passed, but small businesses that suffered financial losses after the
hurricanes may still apply for SBA economic injury disaster loans. For
small business owners in Louisiana, Alabama and Mississippi affected by
Hurricane Katrina, the deadline is May 29; Florida business owners have
until June 14 to apply. Small business owners in Louisiana and Texas
affected by Hurricane Rita have until June 26 to apply. July 24 is the
deadline for Florida businesses that suffered losses after Hurricane Wilma.
Through May 7, the SBA has approved 140,131 disaster loans to
homeowners, renters and businesses in the disaster areas, with an approval
rate of 42.8 percent. The total includes 120,123 disaster loans for
homeowners and renters for $7.14 billion, and 20,008 loans to businesses
for $1.94 billion. More than $1.07 billion in loan funds have been
disbursed to borrowers.
SOURCE U.S. Small Business Administration
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Related links:
http://www.sba.gov
CONTACT:
Anne Marie Frawley of the U.S. Small Business
Administration, +1-202-205-6948
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