Federal disaster reform bill, including fix to SBA loan issue, moves out of House committee
Among the proposed Disaster Recovery Reform Act's provisions is a change in federal law which would allow flood-hit homeowners who applied for
Current federal law has severely limited or blocked access to Restore Louisiana grants for the roughly 10,000 Louisianans who applied for SBA loans in the wake of the 2016 floods -- even if those homeowners never actually borrowed the money.
The Disaster Recovery Reform bill also includes a range of other significant measures which would overhaul how the
It would also provide additional funding for flood-prevention and disaster-mitigation work, according to Graves, and provides more flexibility for local governments to combine pots of federal funds to complete projects.
"This is one of the most significant disaster recovery and preparedness bills in decades," Graves said in a statement. "The legislation truly captures and takes action on the frontline feedback and lessons learned from our August flood, recent hurricanes and other events. This is the way
The SBA "duplication of benefits" issue has been among the most frustrating roadblocks faced by
Federal disaster-response law currently prohibits victims from receiving duplicate government assistance for the same damages. The federal government has interpreted that rule to mean those approved for SBA emergency loans -- even those who didn't actually take out a cent -- can't receive recovery grants for the same amount.
Other sections of the proposed Disaster Recovery Reform Act would streamline the way federal officials determine how much damage floods dealt to roads and allow arbitrators to settle disputes between
It would also require
The bill's passage by the
If passed by the full House, the bill would need to clear the
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