SBA loan approvals pass $9B for hurricane rebuilding

Processing has been finished for more than 96 percent of rebuilding loan applications for those affected by the hurricanes in Florida and on the Gulf Coast.

According to an SBA news release, the record loan volume during the last eight months is more than double what was provided in the agency’s record disaster response to the Northridge, Calif., earthquake in 1994. As the result of the earthquake, SBA made $4 billion in loans in 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 in the release.

“The challenges and obstacles for small businesses continue to be significant in the affected areas,” he added.

In New Orleans, as many as half of the affected residents haven’t returned to the area, and Barreto noted that there are thousands of people who have been approved for loans but haven’t decided whether to accept them.

“We continue to urge everyone whose loan application has been approved and is ready to start the rebuilding process to (contact us) and arrange for a loan closing,” Barreto said. “We want to get this money into the hands of the people in the disaster areas as fast as we possibly can,” he added.

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.

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 has been disbursed to borrowers.

SBA’s Barreto announced in April that he is resigning from the agency to serve as national chairman of The Latino Coalition. He is continuing at SBA during a transition period.