BAY ST. LOUIS, Miss. -- Six months after back-to-back-to-back hurricanes lashed the Mississippi Gulf Coast and southern Florida, the Small Business Administration says it has been processing and approving low-cost disaster loans at a record pace for tens of thousands of hurricane victims.
But those figures carry little weight with critics who say that even a record pace isn’t fast enough given the scope of the natural disaster, or with victims left wondering why their application has been denied or, worse, if it has gotten lost in some bureaucrat's computer.
The SBA has the numbers to back up its claims. As of Feb. 21, its records show it has approved a total of 17,136 home loans worth a total of $1.2 billion in Mississippi and 30,188 home loans worth $2 billion in Louisiana. Across all the areas hit by the hurricane trifecta of Katrina, Rita and Wilma, the SBA has approved $4.12 billion in loans to more than 58,000 residents who qualified for loans of up to $200,000 at below-market interest rates to repair or rebuild their homes or up to $40,000 to replace renters' lost possessions.
In hard-hit Hancock County, Miss., alone, the SBA has approved 2, 416 home loans totaling more than $245 million.
"The SBA has been approving disaster loans at an unprecedented pace," says SBA Administrator Hector Barreto. "Never before in our history has the SBA been asked to respond to a disaster of this magnitude, and our people have worked tirelessly, compassionately and with urgency to meet the needs of the people affected by these hurricanes. Our results beat by more than six months the time it took SBA to reach $4 billion after (California's) Northridge Earthquake, which was the only other disaster to surpass the $2 billion mark in our 52-year history."
But it's also possible to look at the glass as half empty. Six months after Katrina, the SBA still hasn't processed 31 percent of the home loan applications it has received in Mississippi and 41 percent from Louisiana residents. And of those applications it has processed, 41 percent were rejected in Mississippi and 39 percent in Louisiana.
Criticism over qualifying criteria
The SBA has no explanation for the high numbers of rejected loans other than to say that the applicants didn’t have adequate income or good credit ratings.
"We’re a little bit more lenient (than banks) when it comes to qualifying standards," says Matthew Young, an SBA spokesman in Mississippi. "However, we still have to be accountable and prudent in making the loans because it’s taxpayer money."
That statement highlights the Catch-22 nature of the disaster loan process: Many Katrina victims are out of work and forced to lean more heavily on credit cards than ever before, a combination that few lenders are likely to consider a good credit risk. And despite their desperate financial circumstances and the fact that many Gulf Coast residents had comparatively low incomes before the storm, the SBA hasn't taken any steps to adjust its qualifying criteria.
The agency's response also has left some hurricane victims with clean credit but little cash feeling bitter and frustrated.
Patrick Kimbrell of Bay St. Louis said he applied for an SBA loan after FEMA rejected his request for disaster assistance because he hadn't yet applied for a loan. Then the SBA turned down his application because the agency deemed him not creditworthy, he says.
"My wife and I bought a house just five months before Katrina hit," Kimbrell says. "The bank saw nothing wrong with my credit and loaned me the money.
"I don't know what the heck is wrong with the SBA. I've never missed a payment in life; paid off several loans, including some car loans, and didn't carry any balance on my credit card."
Kimbrell says he is making repairs on his home using a small insurance settlement. "It won't be enough to repair (the house) all the way," he says. "But at least we got a roof put on it."
The SBA does have an appeal process for those that have been denied a loan, and Kimbrell said he might challenge the ruling if he can find the time between making repairs to his home, making a living and getting his family's life back on track.
Process, process, process
Getting an SBA loan can be a daunting process, especially if all your financial records were wiped out along with your home. SBA applicants must submit loan applications and provide income statements, tax returns and other income-verifying data. Loan officers then assess an applicant's capability to repay the loan based on its internal criteria. SBA "loan verifiers" also physically inspect the damaged properties. The agency also requires that applicants put up some kind of collateral, which in disaster situations usually means the real estate they are rebuilding.
Although the agency averaged more than $36 million in loan approvals a day during December, some applicants say they have been waiting for months to hear whether their applications have been approved.
"We've had an SBA application in since before Thanksgiving and haven't heard a single word," says Yancey Pogue, a Bay St. Louis real estate agent. "Now, to be fair, I also haven't been pestering them on the phone every day like you have to do with every other government agency these days, so maybe it's time I get started on that mission. But don't you think that ... waiting for that long just to hear back is, well, wrong?"
Pogue isn't the only one criticizing the SBA for the pace at which it is processing applications. Lawmakers have ripped SBA officials at congressional hearings, accusing officials of dragging their feet at a time when people need critical help.
SBA's Barreto acknowledges that in the early days after the hurricanes his agency suffered through computer snafus, had problems gaining access to the stricken areas and that its 880-person disaster assistance section was overwhelmed. But he says the first two problems have been solved and the agency has grown its disaster-assistance team to more than 4,000 since then.
"More than two-thirds of SBA's 6,346 employees are working seven days a week to handle the demand for loans," he says. "We are committed to doing whatever it takes to make sure every person who needs and qualifies for help, gets it quickly."
SBA chief has his defenders
And although some in Congress called for Barreto to resign, he has his supporters on Capitol Hill as well. Hurricanes Katrina, Rita and Wilma were a "triple whammy (that) caused unprecedented challenges for government officials trying to provide assistance to the hurricane victims," House Small Business Committee Chairman Don Manzullo, R-Ill., said at a December press conference. "Quite frankly, the SBA is in a no-win situation with this disaster. It is understandable that those affected by the disaster want to get their loans as soon as possible. At the same time, taxpayers demand accountability and a reasonable expectation that the loans will be paid back. That takes time to determine whether applicants can pay back the loans."
Manzullo noted that owners of businesses that received SBA loans to rebuild after the 9/11 terrorist attacks also complained about the slow processing times. "Earlier this year we learned that twice as many of the 9/11 loan recipients defaulted on their loans than any previous disaster, saddling taxpayers with the added costs of repaying the loans," he said. "And still, the SBA was criticized for not responding fast enough."
Such statistics hardly register with someone like Kimbrell, who is juggling two jobs and scrambling every day to make ends meet. "I'll tell you about disaster," he says. "The SBA is a disaster, that's what that is."
Historic ruins await their fate
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It's about time we see stories about Mississippi! We have suffered great devistation here, and it seems no one cares, all we hear about is New Orleans.
Selika, I agree with you...The Red Cross is a joke.
I live on the Mississippi Gulf Coast. My children and I were in our home while it flooded, due to the near 30 foot storm surge, an experience I hope they never have to go through again. Yes, I had homeowners insurance, and yes I had hurricane insurance. However, being at 20 feet above sea level, and not in a "flood zone", I had no flood insurance. We lost everything in our home, including the car in the garage. While the insurance companies bicker about the water being flood or wind driven I have rebuilt, using all of my savings. I have yet to receive money from insurance. Today we sit in a home with only one working sink, no kitchen cabinets or countertops,and no living room furniture; and we thank God for it every day. We are one of the lucky ones.
Anyone who thinks people here are just sitting around waiting for a "hand out" is just plain ignorant, and obviously has no clue as to the damage received here.
Caren, Ocean Springs, MS (Sent Mar 2, 2006 3:14:03 AM)
It's about time we see stories about Mississippi! We have suffered great devistation here, and it seems no one cares, all we hear about is New Orleans.
Selika, I agree with you...The Red Cross is a joke.
I live on the Mississippi Gulf Coast. My children and I were in our home while it flooded, due to the near 30 foot storm surge, an experience I hope they never have to go through again. Yes, I had homeowners insurance, and yes I had hurricane insurance. However, being at 20 feet above sea level, and not in a "flood zone", I had no flood insurance. We lost everything in our home, including the car in the garage. While the insurance companies bicker about the water being flood or wind driven I have rebuilt, using all of my savings. I have yet to receive money from insurance. Today we sit in a home with only one working sink, no kitchen cabinets or countertops,and no living room furniture; and we thank God for it every day. We are one of the lucky ones.
Anyone who thinks people here are just sitting around waiting for a "hand out" is just plain ignorant, and obviously has no clue as to the damage received here.
Caren, Ocean Springs, MS (Sent Mar 2, 2006 3:15:51 AM)
Bob from Santa Ana sez:
Maybe people should consider not living in hurricane-prone areas, eh? Why do we keep getting asked to subsidize people who take risks? That is why I live in a low-risk area and have appropriate insurance to cover the basic risks.
I believe there are many earthquake faults running
through Santa Ana. In fact, there are many you don't
know about because there are more discovered every
day. As a former Californian I can't get too
judgemental concerning the hubris evoked by many
from out of the stricken area. But I would rather
be in South Mississippi than Southern California.
I'll try not to complain about my tax dollars when
The Big One hits.
J., Bay Saint Louis (Sent Mar 2, 2006 5:21:31 AM)
Poor decisions or not, its a simple fact that there is no "step" system for getting back on your feet in this country. You either qualify or you don't. God forbid you should be $5 above the qualifying dollar amount. I know from personal experience that is it easier, and sometimes, franky, more beneficial, to pass those jobs at Mc'Ds and Burger King in order to qualify for state aid. It is a shame. And yeah, I don't favor rebuilding in areas below sea level, but again, people were devastated...we expect our government to bale us out and we get grumpy when it can't. That's our real shame: we don't rely on our neighbors as we should.
By the way: am I the only one to notice that the "trifecta" of hurricanes are all female names? Nothing like the rath of a woman scorned!
Stephanie Umbro, Maine (Sent Mar 2, 2006 5:42:43 AM)
The people whose homes were destroyed and had homeowners insurance who is not paying out should be suing the insurance companies. Just because you do not have "flood insurance" does not mean your homeowners insurance should not pay. If a tornado had hit everything would be destroyed just like in a flood. Does anyone remember the F5 that hit Oklahoma City back around 1998? Everything flattened. Flood or tornado...it doesn't matter HOW your home is destryoed...IT'S DESTROYED!! Go sue your homeowners insurance. You are paying them to replace your home and belongings in case of ANY disaster...they are just trying not pay because of a "technicality" in terminology. Don't let them get away with it...if they do when a disaster hits OUR towns, we'll be faced with the same evasion of homeowner's insurance not paying. Even if you don't rebuild, that money is yours because it's insurance. Pay off your mortgage and take what's left and go build in another part of the state, or start over in another part of the country. By they way, the self righteous people who say "God helps them who help themselves" should read the Bible better. That phrase is NOT in there and it is absolutely NOT true. God helps those who ASK, (read James), whether you are able to help yourself or not has no bearing on it. What a self righteous Pharisee anyone is to say the victims of Katrina are not helped because they don't help themselves. You are so uninformed and totally blind.
Rachel, Round Rock, TX (Sent Mar 2, 2006 8:22:05 AM)
T. Ryan, you and i keep tring to tell the same thing.....and some of these people....STILL don't understand....is it ignorance?.....we are not in New Orleans!!!
andy,ms (Sent Mar 2, 2006 8:33:25 AM)
THESE are the kind of Americans our policies have wrought: bitterly divided, self-righteous, uncompassionate (and WHINEY in their self-righteousness).
Imagine RFK were still alive and "dreamed things that never were and said 'why not?'" Could you imagine the derision he'd get from some of this group? Would be interesting to know their political affiliations--if we'd even need to ask...
S, Dade City, Fl (Sent Mar 2, 2006 8:56:54 AM)
Bob, Next time you Democrats have a severe earthquake on your hands just blame yourself for being so foolish to live in California....
Barry, Charlotte, NC (Sent Mar 2, 2006 9:07:51 AM)
We are so sick hearing about the "poor" Katrina victims. We survived the Northridge Earthquake in CA and never asked for Federal aide. No one in the media has the guts to be honest and state that most of the people had no insurance, no jobs, did not want jobs and were on welfare. That is not the government's fault. When will we take responsiblity for ourselves. I worked two or three jobs after the earthquake and would NEVEr expect the government to help me. That is my responsiblity. No wonder our country is falling behind. All the media liberals are not helping any. Do you want a welfare country? It is time we face facts - Katrina was a horrible catastrophe but certainly we cannot take care of these people forever. Wake up America, help yourself. This is a great country and just appreciate it and quit whining and complaining. Why should anyone help you when you did not bother to have insurance on your property in the first place.
Sally M. (Sent Mar 2, 2006 9:21:08 AM)
The real trick is to keep living. Don't give up. Remember this forever and remebmer on election day. Mississippians, don't give up and keep on going. Learn from governments mistakes, because they won't. Hold your leaders to their promises and call them on it when they fail(and they will fail). Good luck and don't get mad at those idiots with nothing but negative things to say. Ignorance is bliss and "it won't happen to me" attitude will bite them in the ass someday.
Hugh W. Sterling VA (Sent Mar 2, 2006 9:26:24 AM)
When will the people of the Gulf Coast wake up and realize they cannot possibly rebuilt (especially in New Orleans). How ludicrous. It should only be at their own risk. Why should the government be responsible and of all things to blame our President in the most ridiculous thing I have ever heard. The media goes right along with all this. I would never expect the Federal Government to replace or repair my home - where in the world did that idea ever get started. Why would anyone move back to an area where there surly will be another devastating hurricane - nothing can stop the water - floods will certainly be a reality of life. If anyone should take the blame now, it is the local government who are so inept it is unbelievable and the people who think they should rebuilt. We are wasting our money. I am glad and proud that we helped in the aftermath of Katrina, but it is now 6 months later and you either leave and go on with your life and most of all find another job to support yourself - No government agency is responsible for our lives. On one hand, we don't want the government to be "Big Brother" but on the other hand we want them to give us everything for free. There is No Free Ride - wake up and help yourself.
Heidi G (Sent Mar 2, 2006 9:30:19 AM)
Again the Media blames President Bush for the breaking of the levees in New Orleans. Why don't we hear the local and state government being to blame. I guess it's easy for the liberal media to blame the President. New Orleans should never have been built where it was and no homes should have been built below sea level - and now you want to rebuilt - surly if another flood comes AND IT WILL, President Bush will be blamed again.
Do not rebuilt New Orleans - the same disaster will happen again. No levee can hold back the water.
Ron G (Sent Mar 2, 2006 9:34:50 AM)
Come on! How long does it take for you people to realize that this Administration is not about or for the people, the citizens that helped elect it,it's all about the foreign powers that regulate oil prices and busing in people from south of the border to "do the jobs that we won't do". Well, maybe if the cleanup jobs along the coast paid $10 an hour, instead of $3.75, we would all line up for an application. Like has been said, "I didn't vote for him" or the crooks he appointed.".
bob, South MO (Sent Mar 2, 2006 9:35:25 AM)
It's really saddening to see negative remarks from people, but not suprising when you look at where they're from. Southerners, with all our flaws, are a tough breed, but we're also some of the most compassionate and generous people. My family donated money to Florida when they were devestated by a hurricane and they did the same when parts of california were damaged by an earthquake. There are dozens of places in this country that are prone to natural disasters, but that's just motivation to make us build better buildings, infastructure and governments. It's not a license for everyone else to sit from the comfort of their own (intact) home and criticize those who made different choices than they. I hope the God you serve takes pity on you, because these responses have been the most disturbing and cold-hearted things I've read since the disaster.
Hannah, Oxford MS (Sent Mar 2, 2006 9:39:15 AM)
Why should we help those people who used their FEMA money on designer purses, clothes, etc. My heart goes out to the people who are trying to get their lives back together and who are getting the run around from insurance companies. I wish there was something I could do. But the people the news who were stealing and attacking rescue workers, angers me. These are the people are the true reasons why the rescue, relief and recovery efforts failed, and why some of these comments have been posted. Don't be angry with the people who are posting negative comments, they are only commenting on what they have seen and read about. They are only commenting on some of the situations or people, not all. Be angry at the people who have ruined the reputation of the wonderful people who live in the affected areas. Be angry with the people who didn't want to pay for insurance or refused to leave, and now the country has to take care of them and clean up their mess. After I lost my home in 1992 during Andrew, I was devestated, I lost everything and insurance was a nightmare and I didn't have the help and resources that is now available. I had to rebuild, relocate and start a new life. I used up every penny from my savings, had to find a new job, relocate my children and everything. Trust me, it's hard, but you've got to remember that everyone has a heart and everyone in America wishes this didn't happen, but you can't judge a person by what they write. This is America, and they have a right to say what they feel. But you can hunt down these people whole stole, raped, murdered and took advantage of this disaster, turn them in and make them pay. That is something that could speed up the healing process for lots of us. Life isn't fair sometimes, but sometimes it is.
Marie B., Florida (Sent Mar 2, 2006 9:45:44 AM)
#1 - Please recognize that the Mississippi coastal towns are not in New Orleans. Bay St. Louis, Waveland etc. are not below sea level. New Orleans was destroyed by a defective levee system. Mississippi towns, with homes that have been standing for 100+ years, were destroyed by the winds of Katrina.
#2 - SBA may have records to show that they have "approved" loans but these must reflect preliminary approvals. Our daughter's family was "approved" for a loan of $190,000, an amount much higher than she requested. They had applied for just enough to repair their home.
All of her neighbors were also "pre-approved" but no one has actually been able to obtain a loan. Apparently these funds can't be used to refinance current mortgages, only for repairs. This just increases debt for people who have already used up their savings and family donations. Our daughter continues to make mortgage payments on a home that can't be lived in. A refinance combined with repair loan would have lowered her monthly payments slightly but SBA's final analysis was that they wouldn't qualify. This is the case with everyone in the neighborhood.
Her husband is a licensed roofing contractor. He has work. She is a dental assistant who has returned to work since her dentist used his savings to repair his office. (He also wasn't approved by SBA.)
The only explanation that I can see is that SBA is running two sets of books.
Cathy, Mapleton UT (Sent Mar 2, 2006 9:48:41 AM)
If the individuals who seem to know everything would take a little time out of their lives, visit the areas hit by the hurricanes, hear the stories of the individuals; do a little giving instead of complaining, and open their hears vs. their mouth they would realize that most of the individuals are up against the government, insurance companies, red-tape, etc.
Our church sends volunteers every other week to help, no one, and I mean NO ONE, has mentioned anything but positive comments about the people and their resiliency.
As the old cliche states, A person should have to walk a mile in someones shoes before they find fault. Some of these individuals only have the shoes they were wearing at the time the hurricane hit.
I noticed some of you are from Florida and other areas close by, why not drive and find out for yourself. I am sure your would be eating your words.
The week I was their I met volunteers from many areas; why not give a week, it will be the mist fulfilling week you will ever spend.
Bob - Hamburg, PA (Sent Mar 2, 2006 9:55:12 AM)
i just watched a video clip on the news this morning in which BUSH and fema were told of the impending disaster along the gulf coast when,NOT IF, Katrina made landfall there.... they knew before hand... i say no more excuses and blame. Lets all work to get our great country back to where we need to be and concentrate on our on soil and not sand thousands of miles from here.....God Bless all of you affected by this disaster...our prayers will continue until all is healed......
Debby---- Coshocton,Ohio (Sent Mar 2, 2006 10:08:56 AM)
Wow, what has happened to the so called "christain" compasion we hear so much about today? If you people that have been writting the terrible things I have been reading are "living" your religion I pity your expeience on judgement day. You are truly christains with a small c.
Pat Maloney Grand Rapids Mi (Sent Mar 2, 2006 10:25:04 AM)
Well I live up in snowy Upstate NY, not to many Natural disasters up here. I would like to address all those individuals who have posted negative comments regarding those who were affected by the hurricane.
As I recall the United States of America is a government "of the people, by the people, and for the people". Our government was established to govern our lands, and help the people of those lands as needed. What gives you the right to selectively help those who you think deserve it? What gives you the right to decide where some should or shouldn't live? I am sure most of you supported the war in Iraq, and the 200 Billion Dollars we have spent thus far in that country to fight a war against someone with imaginary "WMD". I am sure you also support the "War on Terror" we continue to fight around the world. So why is it so hard for you to support your fellow Americans? These are people who lost everything in a hurricane many predicted, yet most everyone was unprepared for the actual event. How is that so different from the attack on 9/11 ?? Was there not warning before those attacks?? The victims of that disaster were as equally unprepared for the actual event as the victims of Katrina, weren’t they?? No one expected an attack of such planning and magnitude. No one expected the towers to fall. However they did and Americans were falling all over them selves to help those victims. With fire in their eyes they donated time, money, and what ever support was needed to those that needed it. We vowed we would do what ever it took to never forget those that perished that day. We would do what ever it took to rise again, and honor their memories. Why is it so different now?? Because there isn't a crazy lunatic to chase, our a country to invade?? There were ENTIRE TOWNS which were lost in this disaster!!!!! How can a blind eye be turned away from that level of devastation.
Those of you who have posted negative comments with regards to those who were affected by Katrina should be ashamed to call your selves Americans. To me it is un-American to not help your fellow countryman in their greatest time of need.
As for the SBA, FEMA, and the BUSH administration, is anyone really surprised at the level of attention and responsiveness we have seen towards this disaster?? I mean come on people its not like there is "WMD" in Mississippi!!!!
Seth in Watkins Glen, NY (Sent Mar 2, 2006 10:29:00 AM)
I have read all the negative responses on this link and I am dis-heartened by the lack of concern these crude individuals have for the common man. Yes we pay taxes for things like Katrina. What better way to spend our money. Or would you like it to continue to line the pockets of our glorious politicians. Let's hear the song you would sing if this happened to you. Hopefully justice will prvail and you will have your chance to be without. Now with seeing the video that was released I would hope that you would at least, and I mean at least have some compassion for the thousands that lost their lives and their homes. By all means I want the federal government to spend every dime of my taxpayers money for Katrina Victims. EVERY DIME!!!!!
A Cooper, Virginia (Sent Mar 2, 2006 10:49:06 AM)
America the greatest nation in the world. The people that founded this country would be turning over in their graves. We have always been a nation to help our neighbors in need. I have been a strong supporter of this nation and its policies; after this. I have become more humble and ashamed of the people we place in the offices that run our country. Its time we take care of our very own and make America stand for what we have fought and died for generations for the beliefs we hold dear. Its no longer in God we Trust.
Randy Nichols Mount Vernon In. (Sent Mar 2, 2006 10:51:35 AM)
BETTY SUE -you hit the nail on the head. Obviously there are people that are posting that have no compassion for human beings (only their own relatives maybe). Not everyone in N.O. is looking for hand outs, but they do want what they are due. It is funny how we can go over and help an entire country, but we cannot help people here in our own back yard. People will have their opinion and I can respect that, but most people are just talking until something of this nature hits closer to home.
Tricy,Chicago, IL (Sent Mar 2, 2006 10:53:53 AM)
There are so many critics in this country. The real finger needs to be pointed right directly at the governors and mayors. They continue to want to blame the government and FEMA. Yet, they should have had a plan for this type of disaster since they live in this type of area. President Bush and FEMA got the information they had and worked as best they could with the time they had, yet it was such a challenge to help in this situation. I get so sick of people complaining of the disaster effort. This was a major disaster that has never happened before in the history of America. Come on people wake up and be thankful for the efforts. They could have just left you there soak. I think they should just bulldoze the entire New Orleans area and make it a giant landfill. This world would be a better place without "SIN CITY".
Mike, Oklahoma City, Oklahoma (Sent Mar 2, 2006 11:03:16 AM)
It makes me sick that some people would say the Government shouldn't help these people and that they should help themselves, and then in the next breath support an illegal, unwise, wastefull, arrogant, losing, war in Iraq to build an entire "nation." You people should go back to school and do some learnin..
Douglas Burgess (Sent Mar 2, 2006 11:25:29 AM)
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