Being key. We do make loans for insured or underinsured losses. Well take an salmon of the insurance policy. Theres a lot of Lessons Learned here, but i dont want to state a specific percentage about nonfactual numbers. We can get that number. Please. The 108 mendes features youd be interested is your determination as to how many have insurance at how many different. Im assuming you would agree thats critical of the amount of insurance they have when people look to the federal government to step in and fill a gap. Just to clarify thats part of our process. Well make a loan for 1 in the theater 50,000 of insurance. We will miquelon upfront and reduce the full amount by about 50,000 will make the phone for underinsured losses. We also take an assignment on insurance prayers these quakes we do when they make it before the insurance is settled. Thats enough for this round. Thank you on the senator. Let me assure you we can get that information. For the record, is not the insurance given on form sba form five, which has to be completed and attached to this . Yes, maam. In addition to the two pages, we do want a simple but complete process. Theres five other forms, one for insurance, one from the higher ice, one form which is an sba and 2202, which is a schedule six liability and ill fix that. If there are improvements come a senator that you to suggest, please let us know that the insurance is required and important because the federal government is helping to fill the gap, hope to file quickly ended at the good sometimes insurance proceeds can be slow and frankly some insurance come and is there better than others about honoring the contracts they have with these businesses and thats another important oversight that i hope the committee jurisdictions, which is not this committee, can provide in this recovery. Are there any other questions because id like to be to the second panel and give them an opportunity. Anything else you will want to add quick no, maam, thank you. We been hit with the 60 billion request did that come to the white house . It did. The white house and Appropriations Committee has reviewed it. Were part of that is attributable to her within this committees jurisdiction. Does anybody have an idea . [inaudible] [inaudible] 40 million for the economic initiatives who discuss and 10 million for the ig. How much of that on authorization will leverage an additional loans quick approximately four and a half billion dollars for lending authority. Okay. One mother not related to that, but who put those numbers together, by the way . Was that she do put this together, your shop . The agency . These numbers you just gave us. Part of it is mine and the Disaster Assistance part of it is michaels and the ashburn or development in a surety bond peace and Capital Access also. Isamu for once no more about how you could numbers together we can get in touch quick absolutely. When someone applies for a Small Business administration loan, is their insurance feted at that time . Is commissary. The le mans circuit application, its part of their underwriting Due Diligence that they have to contact as part of the processing of their. Theoretically anyone with a Small Business loan will receive compensation from their Insurance Company has supposed to having an issue coming to the sba. Is one of the decisions a Small Business of an estimate. If they have adequate insurance or underinsured, which is providing one option for their toolbox for mental commitment is. When you do your Due Diligence, do you require they satisfied they are fully insured for losses as to their structures, their inventory, interruption of business in a sort thing . When we speak with the Insurance Agent weve exactly what the insurance total minutes of that time for what they anticipate the settlement to be. Been talking before the disaster when somebody comes to you for a long. For disaster long quakes im sorry. Maybe its more appropriate for mr. Chodos. Someone who comes in for an sba loan. Has come a syrupy but youre long program run through the banks in London Partners as part of the normal private sector prior to his of insurance providers. About to katrina if he would urge you to give me these numbers, what do you find the sars people who have an sba loan coming back to the sba after a disaster and watching either a loan for Disaster Relief or Something Like that . For an individual receives a disaster long . Theres an opportunity in the event that theres uninsured or underinsured losses. There may be situations where we require Flood Insurance and there may be additional damage for what the policy covers because of the different footprint or different type of event that occurs from one disaster to another. Senator, we can issue information about the standalone sba program. I wish is checking with us after the default rate is comparable to the private sector default rate and its mom is tonight the subsidy for that program relative to the leverage it provides for Small Businesses and that the lender of last resort. I want to make clear and i think the senator has a good line of questioning that insurance underlies this whole recovery process. Homeowners have insurance. Theres Flood Insurance. These insurance policies can be expensive, but its required in many communities. The Small Business loans are there to fill the gap or to get money more quickly until insurance proceeds come in. It would be important for the record to submit how many of the businesses successful and not just applying, but receiving loans. What is their level of insurance coverage. But lets go to the second panel if we could. Thank you very much. The second panel, thank you all. If you could stay and listen to the second panel, i would receive it. Its very important to hear from mayors and Business Leaders on the ground. The first is the honorable john zimmer, first female. She began her career as an advocate for public park space that has become a successful mayor dedicated to fiscal responsibility, publicprivate partnerships and improving the quality of life for local residents. Unfortunately, hoboken is one of them are devastated municipalities in the region and no mayor can appreciate what you and your city council and citizens have been going through and we just offer you our best in this affair. Mr. Jim keane has been the state director of the new york Small Business development and are now part since 1994. He oversees 23 Regional Centers, 35 Outreach Centers that serve 35,000 Small Businesses each year. All of your experience, mr. King, will most certainly be called on it tested for the job ahead of you. Mr. Kevin law is one of the most respected Business Organizations in new york. The long island economy is made up of over 100,000 businesses, 90 complete 20 people or less. Bit with look forward to hearing directly from you about what your business is their same come, many struggling to recover and how we can be as helpful as possible. Mayor, let us start with you and again, hearts go out to the people that youve lost and are devastated, but were going to stay with you for the long haul, long road ahead. [inaudible] make sure your buttons are pressed and you speak directly into the mic. Good morning, chairwoman landrieu and committee members. Its an honor to be here today. I am the mayor of hoboken, new jersey. Hoboken is located across the river from new york city for baseball and franks are not shed in the home of cake costs. With more than 50,000 residents and hundreds of businesses call her square mile city their home, which is why we want the most densely populated cities in america. More than new york city. Were proud to be one of the most walkable communities in the country we ranked number one in per capita use of Public Transportation for commuting. For a vibrant urban community filled with hundreds of boutiques, restaurants and outdoor cafes. With hurricane cindy was devastating for hoboken. For the first time in history the hudson river spilled into hoboken from the north and the south and western half of her city was flooded. Our community center, public works, grouch, three of our four firehouses in 1700 homes were flooded. We estimate the total damage to our community of well over 109. Thankfully her main street, washington street did not flood and is again open for business. Hundreds of businesses located off her main street were severely flooded. Even businesses that did not flood have been severely impacted by one of our principal means of transportation to new york, the past train was flooded has not been restored. Many businesses reported 60 reduction in business due to the difficulty of getting to and from hoboken. Some businesses that flooded remains closed or for us to operate an alternate location as they try to navigate the insurance, it. I call an assurance because the Flood Insurance program is not designed to meet the needs of the urban environment. I believe theres a fundamental unfairness of the system are respectfully asked congress to try to address. When businesses located in a flood zone by Properties Come in the first to purchase Flood Insurance by mortgage companies. But the program tree skirt instead of businesses as if they were basements. If they rent, which many businesses do, the direct uninsured costs are often passed on to the Small Business renters. Under femas definition, the coverage is greatly limited to only those things that euler, hot water tanks and electrical control panels. These rules do not reflect reality places like hoboken, new york city and other urban areas, basements housed businesses and residences, which are critical elements to vibrancy of our cities. A store or permit the requires you to walk down one or two steps is plain and simply not a basement. The Business Owners and residents who work and live doors in homes are required to buy Flood Insurance, require to be premiums in the Flood Insurance system, yet they received virtually no coverage. After having paid Flood Insurance premiums for years, many discover the first time their claims are denied because Flood Insurance they were required to purchase does not actually ensure that peer but we have is unfortunately not a rule that protects against moral hazard, but victimizes people the steeple of the greatest need. For many businesses, the only option is to be administration. Many Business Owners has spoken with tell me they cant afford more dead, but they do need help and we are at risk of losing Small Businesses that make community special. I respectfully ask this committee in congress consider other options providing direct relief for Small Business owners. Unfortunately those without Flood Insurance who do seek assistance from the sba will be the next victims caught in the Flood Insurance trap. If theyre able to receive an sba loan, theyll be required to get Flood Insurance and pay into a program that offers virtually no assistance for the urban garden so business. Their insurance costs will go up excessively but unless Congress Takes action to address the definition of a base and are the coverage provided to dizziness, the garden so business or home owner will be forever codify many Flood Insurance system that fails to benefit down in any meaningful way. The inequity of the system is to pair up when we see homeowners receiving 250,000 in coverage for vacation homes on the sure what primary homes and businesses fall through the cracks of the Flood Insurance program. In the immediate term i strongly urge congress to provide direct assistance for businesses and residents cant Flood Insurance trap. Specifically ask you to take action to address the unfair basement issue for the future. I suggest rather than deny people coverage businesses and residents should be given incentives to invest in the necessary steps to reduce the impact of flooding. For example, there could be assistance of encouraging a solution of energyefficient tanks on higher floors installed in closets. The Current System does not provide incentive. Inflict pain on innocent victims at a time of their most vulnerable. I thank you for your willingness to listen to our concerns and the opportunity to speak to you today. Thank you, mayer said excellently crafted statements and i birdied the staff to begin working on some of the suggestions. Although the Flood Insurance is not the jurisdiction of this committee, we most are money are going to fare at the request as quickly as we can to the perp reacher section. Mr. King. Bantam chair, members of the committee, thank you for inviting me to speak about hurricane sandy. Since the storm hit, weve done very little else. Our previous experience probably help peres. We were among the First Responders in 9 11 for the Small Business community in a few years later i was privileged to travel to louisiana and work with marylin when she was confronting Hurricane Katrina in laying out his strategy or that affair. She has since returned the favor many times over by sharing much information, materials and she also chairs or Associations National committee on disaster recovery, working to institutionalize best practices found nationally so we can be even better in the future. The sheer magnitude of the destruction can be overwhelming to Small Businesses as well as responders. Its hard to know where to begin to determine the steps that will be most project is empty with the feeling of isolation. S. B. D. C. Are part of the community for Small Business people turn because theyre familiar with us. The same occurs within the family. After the disaster i had other states reaching out to me with offers of support from personnel and just Everything Else you could think. Are plans to get to the Holiday Season on our own and reach out to request their assistance sooner you. But that background others to comment and when it seemed about the federal response. There is a definite improvements since 9 11 anything since Hurricane Katrina. The change in the past disaster teams, when they came in 9 11, did answers they didnt want to listen to anybody. That is changed or is changed manically since then. Immediately after the hurricane, i received a call from james rivera wanted to court made effort that is something that wouldnt have anticipated. Prior to the hurricane with eight offices in the primary disaster areas with two outreach locations. Today we have 25 offices that are operational because we transferred staff around to be in proximity to businesses that were the hardest hit need the assistance that is because a lot of these folks can afford to travel distances to get the help they should be receiving. We also have our staff going basically mobile. Weve given them laptops, Verizon Communication devices for us and were going into the businesses so they can deliver information in the assistance needed. The day after the hurricane, with 30 volunteers from upstate. With them to plane is 30 individuals in the area of highest need is the initial days of the recovery. The loss of power is a critical fact year, not so much blaming utilities, but when you dont have the power you dont have communications, the internet and most of them is the communication we use these days are electronic so they went out the window. So far we have 72 locally than basically providing information. We got to go back to the oldfashioned way of putting up posters and wordofmouth to get the attendees and position. Many of the documents at the office of Disaster Assistance uses are now online in a safe nominal improvement over what i can remember from the previous disasters. In their communication with us made a huge difference in areas like Staten Island, which was extremely hard hit. We were able to put them in touch with our local sponsor, the college of Staten Island and they located their Business Recovery center they are a college and that made a huge difference. The rockaways i dont know if youre familiar, but its basically a Peninsula Area in the south part of queens. At 1100 businesses operational before the hurricane. The week after the hurricane did five open businesses. Today they have a handful. We recently held an event in howard beach is 45 businesses show up and we were able to provide assistance at the event for all 45 to get t