Officials Consider Reopening SBA Loan Applications After Sandy

A bill would reopen applications for loans through the Small Business Administration for companies after Sandy.

NJ Spotlight News | July 14, 2015 | Politics

By Brenda Flanagan
Correspondent

Noisy neighborhoods in Union Beach where contractors work to lift homes up and away from storm surges — three blocks away from the bay where Sandy slammed ashore. But here on the waterfront, it’s all too quiet. An empty lot still scars the spot where JakeaBob’s restaurant once stood, before Sandy ran it over.

“I think it’s terrible. I wish they would’ve rebuilt again, you know what I mean? Because it’s where we spent birthdays there, and it was nice to sit by the water and eat. It was really nice,” said Union Beach resident Mary Bovo.

“A lot of places didn’t even reopen. They don’t want to have to deal with it again — the money issue and everything,” said Dominic Viola, manager of Dough Boy’s Pizzeria.

“I’m angry. I’m angry. I’m tired. It’s exhausting,” said Gigi Liaguno-Dorr.

JakeaBob’s owner says she’s still waiting for money to rebuild. We told her the House just approved a bill that’d let business and homeowners victimized by Sandy reapply for federal Small Business Administration loans because the agency had been too overwhelmed right after Sandy hit, almost three years ago.

“That’s a long time for them to finally figure out, you know what? We screwed this up and now we’re gonna change it and make it better,” Liaguno-Dorr said.

After Sandy, a recent government audit shows the SBA took twice as long to process loans. In Monmouth County, out of 1,252 applications, the SBA approved just 370, awarding $36 million in loans. Out of 2,217 applications in Ocean, the SBA approved 732, awarding $68 million in loans.

“Which isn’t a very high acceptance rate, considering that most of the people had need,” said Congressman Frank Pallone.

That’s why Pallone voted for the bill to reopen applications for SBA loans.

“Businesses are not back. They don’t have the money to rebuild or renovate their establishments. And we really need to have this assistance program reopened, in my opinion,” he said.

Sen. Bob Menendez will introduce the companion Senate bill, and the SBA has pledged, “…the SBA will be ready to work with those businesses, homeowners and renters to support their long-term recovery efforts.” The Main Street Alliance agrees.

“This will go a long way towards allowing them to build their businesses and revitalize their community,” said Main Street Alliance Representative Jerome Montes.

“No way. No way will I — me, personally — will jump into that,” Liaguno-Dorr said.

Liaguno-Dorr tried to start an off-the-bay Jakeabob’s, but that folded. She’s suing her insurance company and still waiting for a loan from New Jersey’s Economic Development Authority granted in May 2014.

“It’s getting through this red tape to get back to where you were — that’s the bigger fight,” she said.

The bill reopening the SBA loans now heads to the Senate for a vote, but for some businesses with empty buildings and empty lots it feels like an empty promise as another summer season passes them by.