Disaster relief reaches milestone

12/1/2011

The Small Business Administration is constantly providing homeowners, farms and businesses with disaster loans to help them rebuild from catastrophic events or harsh weather conditions. Recently, it was announced that the agency had broken the $50 billion loan threshold.

"Over the years SBA's disaster assistance program has made it possible for small towns and large cities to rebuild, saving jobs and supporting the long-term economic recovery of areas that would have otherwise failed without the help," said SBA associate administrator James Rivera. "The SBA's disaster loan program … makes it possible for disaster victims to handle the cost of rebuilding and take the steps necessary to prevent the risk of being hit by a similar disaster."

Significant SBA loans for disaster relief included $4 billion following 1994's Northridge earthquake in California's San Fernando Valley, which registered a 6.7 moment magnitude and killed 57 people, according to the Pacific Earthquake Engineering Research Center.

In addition, $738 million was dispersed following 1997's Upper Midwest floods, which resulted in river levels rising as much as 27 feet above flood stage, WW2010 notes.

Meanwhile, $2.2 billion was granted to victims of 2004's Hurricane Ivan that spread across Alabama, Florida, Louisiana, Texas and most of the eastern U.S.