Small businesses hurt by Sandy could re-apply for loans

Legislation passed by the House and sent to President Barack Obama Monday would allow small businesses affected by Sandy to apply for new loans from the Small Business Administration, a response lawmakers say was needed after the agency moved too slowly in the wake of the superstorm that slammed the East Coast three years ago.

A report by the Government Accountability Office last year said that the SBA took longer than expected to approve loans in the wake of Sandy, approved fewer loans than in some previous disasters and may not be fully prepared for future disasters.

"The fact is the SBA was caught flat-footed when Sandy came ashore and small businesses seeking relief suffered because of the agency's slow response," said Rep. Nydia Velazquez, D-N.Y., the top Democrat on the House Small Business Committee.