New Build it Back Policies to Bring Relief to SBA Loan Applicants

The de Blasio administration last week tossed a lifeline of sorts to homeowners affected by Superstorm Sandy who may be feeling trapped by federal rules attached to U.S. Small Business Administration loans.

According to the Mayor’s Office of Housing Recovery, many homeowners who drew down on their federal SBA loan both have to pay back their loan and have the amount of their loan deducted from their Build it Back grant. Others are being penalized under federal rules even if they declined a federal SBA loan.

The administration is introducing two new policies “to make it easier for SBA loan applicants in our program to get relief.”

For those who drew down on SBA loans: Build it Back will now increase the reimbursement amount for those applicants up to 100 percent of the value of work. Currently, all applicants receive reimbursement up to 60 percent of the value of reimbursable work. These additional funds will help applicants who drew down and must pay back their loan.

For those who canceled SBA loans:  Build it Back is now offering a simplified process to demonstrate financial hardship. Program officials are encouraging even those who were previously declined a waiver to apply.

The administration has also indicated that they are “actively supporting” legislation in Congress that will ultimately eliminate SBA loans from being counted as a duplicative benefit for Sandy victims.

“In times of need, it is vital that we do everything we can to help our city and its residents recover, not place unreasonable restrictions on home owners, who are simply trying to rebuild their homes and their lives. This slight change in Build it Back policy will have a profound impact on my constituents and New Yorkers across the city. I thank Build it Back for working toward clearing the SBA loan hurdle and doing the right thing for my constituents,” said state Sen. Joe Addabbo, Jr. (D-Howard Beach).