[Congressional Record Volume 152, Number 19 (Wednesday, February 15, 2006)]
[House]
[Page H279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1015
                        SBA KATRINA LOAN FUNDING

  (Ms. BEAN asked and was given permission to address the House for 1 
minute.)
  Ms. BEAN. Mr. Speaker, more than 5 months after Hurricane Katrina 
ravaged New Orleans and the gulf coast, many small business owners are 
still struggling with no relief in sight. Businesses are strained from 
a lack of customers, employees, infrastructure, electricity, and most 
particularly the access to capital that they need to get back to 
business. With no other funds available, many small business owners 
turn to the SBA for assistance. The Small Business Administration is 
prepared to help entrepreneurs through its disaster loan programs.
  Yet today, real criticisms continue to surround the SBA over the 
agency's failure to provide adequate assistance to the gulf coast's 
businesses. Since the devastation from Hurricanes Katrina, Rita and 
Wilma, the SBA has declined approximately 80 percent of all disaster 
loans, with a backlog of over 200,000 pending applications. On January 
30, the SBA released a statement that approximately 51,000 applicants 
have been approved for financial assistance from the agency; but with 
over 312,000 total applicants, this is a dismal ratio between those 
businesses and individuals who are getting loans and those who are left 
waiting.
  As a member of the House Committee on Small Business and because of 
my own experience as a small business owner, I am well aware of the 
stimulative effect that small to medium-size firms can have on our 
regional economies. In the gulf region it couldn't be more critical to 
ensure small business owners reopen their doors to provide essential 
services and jobs that allow families to get back on their feet.
  We can do better. I ask my colleagues to help me in this effort.

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