Kerry letter to Frist

[ProSense]

excerpts from articles)

Democrats Work to Prevent Disaster Loan Program Shut Down; Senate Committee Members Seek Immediate Passage of Funding Bill
23 minutes ago

To: National and Business desks

Contact: Kathryn Seck of the the Senate Committee on Small Business and Entrepreneurship Staff, 202-224-9431

WASHINGTON, Feb. 14 /U.S. Newswire/ -- Today Democratic Members on the Senate Committee on Small Business and Entrepreneurship wrote Majority Leader Frist asking for immediate passage of critical legislation to fund the Small Business Administration's (SBA) Disaster Loan program to ensure Gulf Coast victims of Hurricanes Katrina, Rita and Wilma receive much-needed assistance without interruption.

The SBA waited until just days before the Disaster Loan program was on the verge of shutting down on February 13, 2006 to ask Congress for $100 million in emergency reprogrammed funding. Yet, while Congress approved this money, it will only fund the program through the end of the month.

The Bush Administration is asking Congress for an additional $1 billion to be reallocated from the Federal Emergency Management Agency's Disaster Relief Fund to the SBA's Disaster Loan program -- yet this is still not enough to fund the program through the end of the fiscal year. According to the SBA, $1.3 billion is needed to fully fund the Disaster Loan program through the end of September while the $1 billion the Administration plans to ask for would only keep the program afloat through July.

"The Bush Administration's Band-Aid approach to hurricane relief does nothing but leave more doubt for homeowners and small business owners," said Senator John Kerry (D-Mass), Ranking Member of the Committee. "Waiting until the last minute to get this needed funding just adds to the uncertainty Gulf Coast residents are already facing as they try to rebuild their lives."

The Committee Democrats requested this important legislation move as a free-standing bill before next week's scheduled congressional recess to avoid delay by being attached to unrelated controversial legislation.

Six months since Hurricane Katrina, almost half of the homeowners who have applied for a disaster loan are still waiting for their loans to be processed. Out of the more than 325,000 homeowners who have applied for assistance, nearly 110,000 have been denied. For business owners, more than 30 percent are still waiting for their loan requests to be processed.

"After nearly six months, Gulf Coast residents are still tangled in a web of bureaucracy," said Kerry. "It's sad that Congress has to intervene to ensure hurricane victims are not left without a safety net thanks to the Administration's piecemeal and paltry approach to disaster recovery."


Following is the text of the letter:


February 14, 2006

The Honorable William H. Frist, M.D.

U.S. Senate Majority Leader

U.S. Senate

Washington, D.C. 20510

Re: Passing Legislation To Prevent Shutdown of SBA's Disaster Loan Program

Dear Mr. Majority Leader:

We are writing to ask your immediate attention in passing critical legislation to prevent the Small Business Administration's (SBA) Disaster Loan program from shutting down.

As you are aware, the SBA Disaster Loan program would have run out of money yesterday, February 13, 2006, if the Congress had not approved a last-minute request from the Administration to reprogram $100 million. The SBA has told the Committee that the reprogrammed funding will only keep the program running for about 12 more days and estimates it will need an additional $1.3 billion to avoid a shutdown in FY2006.

Instead of seeking the full amount, SBA has informed the Committee that the Administration intends to request only part of the needed money now, through a re-allocation of $1 billion from the unspent funds in the Federal Emergency Management Agency's (FEMA) Disaster Relief Fund. Unfortunately this will only fund the disaster loan program through July, requiring an additional request for the remaining $300 million in supplemental appropriations to make it through the end of the fiscal year in September.

Rather than continue this piecemeal approach to budgeting, we believe the Congress should pass legislation with the entire estimated amount so that there is stability in the delivery of disaster relief to meet the needs of the Gulf victims, as well as any future disaster victims. We also believe that the request should move as a free-standing bill, rather than combining it with other bills that run the risk of delay because of unrelated controversies.

In summary, we seek your cooperation to immediately pass a free-standing bill in the Senate that would authorize FEMA to reallocate from its Disaster Relief Fund $1.3 billion to the SBA's Disaster Loan program. And we request that any reallocated funds from the Disaster Relief Fund be restored as soon as possible through the next supplemental emergency funding bill that Congress enacts.

Sincerely,

Sen. John F. Kerry
Sen. Mary Landrieu
Sen. Carl Levin
Sen. Maria Cantwell
Sen. Mark Pryor
Sen. Tom Harkin

http://news.yahoo.com/s/usnw/20060214/pl_usnw/democrats_work_to_prevent_disaster_loan_program_shut_down__senate_committee_members_seek_immediate_passage_of_funding_bill305_x

[whometense]

1. Can't wait

to read the warm response he's sure to get. :sarcasm:

[jillan]

2. I heard on the radio today

that the people from NOLA that are in temp housing were kicked out on Monday!

And that the trailers still sit - empty.\


I don't even know this country anymore.
:cry: :cry:

[TayTay]

3. It worse than that.

The trailers sitting in Hope, Arkansas are going to be destroyed. They were not built for a floodplain and are 'unsuitable' for Louisiana and for NOLA.

I agree :cry: :cry:

[jillan]

4. Your tax dollars at work. nt