SBA Hurricane Recovery Loans Hit $1 Billion

As perhaps the one federal agency who's response to this summer's devastating hurricanes was nothing short of outstanding, the Small Business Administration (SBA) has now approved over $1 billion in disaster assistance loans. Loans from the SBA Gulf Opportunity Pilot Loan (GO Loan) program, now being issued at a rate of $32 million a day, have now been approved for more than 14,200 residents and business owners in the Gulf Coast region to repair or rebuild properties damaged by Hurricanes Katrina, Rita and Wilma.

"Following the Northridge Earthquake in 1994, we approved a billion dollars in loans within 90 days," said SBA Administrator Hector V. Barreto in a press release. "In just 94 days, following the Gulf Coast hurricanes, we have reached a billion dollars in loan approvals despite receiving far more loan applications this time -- more than we've received for any other disaster in the history of the agency. We are working diligently to get funds into the hands of those who need it most, and increasing our response capacity and loan approvals at a steady rate."

The SBA GO Loans program allows SBA commercial lenders to make SBA-guaranteed working capital loans of up to $150,000 more quickly than through the disaster loan program. SBA can deliver a response to a request for a GO Loan guaranty in 24 hours or less.

Also See: SBA Loan Programs