Pols Want Small Business Administration To Forgive Debt To Sandy Vicitms

Did you apply for a loan from the Small Business Administration (SBA) in the aftermath of Superstorm Sandy only to realize that you could have received free cash months later through Community Development Block Grant recovery funds? If so, you probably think it is unfair that you have to pay back a loan to the government when your neighbor is getting a free ride.

SI Live is reporting that politicians are petitioning the SBA to forgive debts of people who took out loans that would have otherwise qualified for the Community Development Bock Grants.

A letter drafted by Congressman Michael Grimm, pleads for those caught in between the various federal bailout plans.

“For months after the storm, residents who went to FEMA for assistance were referred to the SBA to address needs that could not be met by FEMA’s individual assistance program,” Grimm wrote.

Some people were offered SBA disaster loans but declined because they worried about taking on more debt, and a recent decision by the federal Department of Housing and Urban Development allows them to receive assistance under New York City’s “Build it Back” program, he wrote.

“It is critical, however, that we not overlook individuals who qualified for and accepted SBA loans because they felt they had no other options in their quest to recover,” Grimm wrote.

Grimm went on to write about the inherent unfairness of the situation.

“[I]ndividuals who acted precisely as the government suggested — use SBA loans to cover unmet disaster-related needs — are the ones who (are) being punished with additional debt.”

Well, I have to say that the situation does seem unfair. Did you qualify for an SBA loan and accept it? Do you wish you hadn’t? Let us know.