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Hurricanes

Senators Urge SBA and FEMA to Extend Application Deadline for Disaster Assistance

Strategic Insights

— 1 min read

U.S. Sens. Olympia J. Snowe and David Vitter, chair and member, respectively, of the United States Senate Committee on Small Business and Entrepreneurship, have urged the Small Business Administration (SBA) and the Federal Emergency Management Agency (FEMA) to extend the application deadline for disaster assistance in the areas devastated by Hurricane Katrina and Hurricane Rita. The senators expressed concern that many individuals and businesses may not be able to be considered for loan assistance or other relief if the deadline is not extended. They specifically requested that the deadline for Hurricane Katrina be extended to October 28, 2005, and for Hurricane Rita to November 23, 2005.

Key Takeaways:

  • The senators argue that small businesses in the affected areas face extraordinary reconstruction and rebuilding challenges and need assistance to recover and prosper again.
  • The SBA and FEMA have been at the forefront of Hurricane relief efforts in the Gulf region, and the Administration's Federal Disaster programs are critical for rebuilding homes and businesses.
  • The senators introduced the Small Business Hurricane Relief and Reconstruction Act of 2005 (S.1807), which would extend the deadline for applying for Federal disaster loans until one year after the President designates the applicants' county or parish as a disaster area.
  • The senators asked the Internal Revenue Service (IRS) to locate personnel alongside small business personnel in the Gulf region to expedite tax documents required for SBA loan approval.
  • The SBA was requested to provide daily updates on the status of loan applications, including the number approved, received, and average time between application completion and approval.

Statistics:

  • Few SBA loan applications had been approved, according to Senator Snowe.
  • The Senate approved a Snowe amendment to the Commerce-Justice-Science Appropriations bill to provide $595 million to aid Hurricane Katrina's victims.
  • The Small Business Hurricane Relief and Reconstruction Act of 2005 aims to provide relief to hurricane victims.

Sources:

  • U.S. Newswire via COMTEX
  • http://www.usnewswire.com
  • Internal Revenue Service (IRS)
  • Small Business Administration (SBA)
  • Federal Emergency Management Agency (FEMA)

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