[StBernard] Landrieu pushes SBA to clarify payback provisions

[Westley Annis]

WASHINGTON - Sen. Mary Landrieu, D-New Orleans, today urged the Small
Business Administration Administrator Steven Preston to clarify whether
homeowners affected by hurricanes Katrina and Rita are required to use
Louisiana Recovery Authority Road Home grants to repay SBA disaster home
loans. 
 
"Some homeowners are being told by authorities that they must use Road Home
grants to pay off SBA disaster home loans, which could prove to be a huge
obstacle to rebuilding efforts," Landrieu wrote. "These homeowners are
extremely concerned that federal regulations are impeding their return to
their communities." 
  
Landrieu asked Preston to respond immediately so recipients who receive Road
Home grants (funded by community development block grants) and SBA loans are
clear on the law from the outset. 
  
Federal law prohibits the state of Louisiana from duplicating federal
assistance. The Road Home officials and the SBA have been interpreting that
requirement to mean all SBA loans had to be repaid out of Road Home money,
which left many recipients too short to rebuild their homes. 
  
"The Road Home program is just starting and will begin receiving more
applications in the coming days and weeks so I request a written response to
this inquiry no later than Nov. 6, 2006," Landrieu wrote. 
  
Landrieu pledged to introduce corrective legislation "in the first minute"
when Congress returns to session Nov. 13 if current SBA guidelines are
insufficient to meet homeowner rebuilding needs while protecting against
duplication. 
  
Landrieu also sent a letter to Governor Kathleen Blanco to inform her of the
issue. 
"Administrator Preston and I discussed this situation at length last week in
my office, and I appreciate his attention to this issue." Landrieu said. "I
look forward to continue working closely with him to get answers and results
for Louisiana homeowners. Our people have suffered enough. They need to be
able to move forward without any further uncertainties or obstacles.".