Report: Government still ill-equipped to aid small businesses after natural disasters
The federal government not only failed to effectively and timely provide assistance in the wake of Superstorm Sandy, but also remains ill-equipped to assist distressed business owners in another natural disaster despite reforms that were passed and should have been implemented, according to a new report.
“Additional Steps Needed to Help Ensure More Timely Disaster Assistance,” released by the Government Accountability Office (GAO), details how the Small Business Administration (SBA) did not meet its timelines for processing business loan applications after the super storm. The report also warns that a continuing lack of reforms leave the agency vulnerable to a new surge of requests in the wake of the next hurricane, storm or other similar threat.
The report was championed by Congresswoman Nydia Velazquez, from New York’s 7th Congressional District, and includes the Red Hook waterfront where a many businesses suffered devastating property losses. As ranking member of the House Small Business Committee, Velazquez requested the GAO report in May after issuing her own investigation and report six months prior. According to GAO, the SBA was not ready for the spike of applications it received after the storm and continues to be unprepared for such a surge in the future.