Politics & Government

Sen. Boyle Calls for Regulation Changes for Sandy Victims Relief

Senator Phil Boyle said victims who took out SBA loans should be awarded recovery grants as well.

During a Friday morning press conference in Babylon Village, Senator Phil Boyle (R–Bay Shore) called for politicians at the state and federal level to change regulations imposed on disaster victims preventing those who took out loans in the wake of the storm from receiving grant moneys intended for victims.

While some families are beginning to see checks in the mail from the government through the NY Rising program, many families who took out loans from the Small Business Administration will not be fully covered by the program.

"For example, we have two homeowners – homeowner one goes through the forms and is urged to take out the SBA loan and takes it, but his next door neighbor does nothing. According to the NY Rising program as it is now, the person who took the SBA loan will not be compensated for the loan he has," Boyle explained. "The neighbor who did not take out the loan is getting a check."

"This is a serious problem, and its going to cost tens, if not hundreds, of thousands of dollars to state residents," he added.

The issue referenced, the Stafford Act, was signed into law into 1988 and prevents those undertaking housing repair from receiving a Duplication of Benefits, which includes SBA loans as well as grant program funds.

Many homeowners at the conference noted their conflict with the act, which now prevents those who took out the loans from receiving any further compensation and gives them a further debt to pay off.

John Giebel, whose recently raised home was the site of Friday's conference, said he did what he thought he was supposed to do.

"FEMA and the town urged us to get additional funds and go through the SBA," Giebel said. "We took out the loan – we were happy to take it out. But now we're finding that other sources are available to us and we're not eligible. It's seems like the equity is not fair."

Giebel said he was not looking to double up on relief funds, but rather looking to pay down the debt and recoop some of the loss.

"We wanted to get back into our homes as fast as possible, so we thought we were doing the right thing," he said. "Hopefully New York State can do the right thing and give us some support."

Boyle said that story seemed to be repeated across Long Island and other states hit by Sandy.

"Wherever people were hit hard and did the right thing... now saddled with debt," Boyle said. "We need New York State and, most importantly, the federal government to change the rules on the Stafford Act."

He added: "It's easy to do – one swipe of the pen and its changed."


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