Urges President and Congress to enact legislation forgiving community disaster loans issued after Superstorm Sandy.

SCR110

SENATE CONCURRENT RESOLUTION No. 110

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 5, 2026

Sponsored by:

Senator� JAMES W. HOLZAPFEL

District 10 (Monmouth and Ocean)

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

SYNOPSIS

���� Urges President and Congress to enact legislation
forgiving community disaster loans issued after Superstorm Sandy.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution

urging the
United States President and Congress to enact legislation forgiving certain
community disaster loans.

Whereas,

New Jersey has faced several natural disasters resulting in severe economic
upheaval in recent years, principally Superstorm Sandy in 2012 and the current
COVID-19 pandemic; and

Whereas,

Many New Jersey residents continue to struggle financially to remedy the damage
inflicted by Superstorm Sandy; and

Whereas,

The COVID-19 pandemic is causing increasing uncertainty and economic disruption
throughout the State, which has the second highest incidence of novel
coronavirus in the United States; and

Whereas,

In the wake of Superstorm Sandy, New Jersey received federal aid in the form of
both community disaster loans issued under the �Disaster Relief Appropriations
Act of 2013�and small business loans issued under the �Small Business Act�; and

Whereas,

The Federal Emergency Management Agency (FEMA) has recently pressed New Jersey
municipalities to start repaying the community disaster loans issued
post-Superstorm Sandy despite the clear and original expectation that the loans
could be repaid slowly and over time, with the possibility of complete
forgiveness; and

Whereas,
Mandatory repayment of the community
disaster loans creates increased financial pressure on New Jersey communities
and comes at a time that is difficult for all throughout the State; and

Whereas,

The �Small Business Act� was passed to aid, counsel, assist and protect the
interests of small businesses through the creation of small business
administration loans; and

Whereas,

New Jersey residents, who requested and were granted small business loans
post-Superstorm Sandy, now face the possibility that they may be precluded from
receiving further disaster relief aid during the COVID-19 pandemic since any
new grant issuances could be counted as a duplicate benefit; and

Whereas,

The duplication of benefit policy was partially abolished by the Department of
Housing and Urban Development in February 2018 under the �Bipartisan Budget Act
of 2018�; and

Whereas,

The abolition of the duplication of benefit policy should be extended to funds
received following disasters dating to 2011, including Superstorm Sandy; and

Whereas,

Rep. Chris Smith reintroduced H.R. 6454 on April 3, 2020, a bill which mandates
forgiveness of certain community disaster loans secured by New Jersey from FEMA
to help with Superstorm Sandy recovery and which also addresses the duplication
of benefit problem by removing small business administration loans as a
disqualifier for people who sought or received federal money to help them
recover in the wake of Superstorm Sandy; and

Whereas,

The forgiveness of the community disaster loans and the changes to eligibility
for small business loans would have a profound impact throughout the State in
helping stabilize the economy and would provide much needed support to State
residents in the fight against COVID-19; now, therefore,

����
Be It
Resolved
by the Senate of the State of New
Jersey (the General Assembly concurring):

���� 1.��� The Legislature urges
the United States President and Congress to enact legislation forgiving
community disaster loans issued after Superstorm Sandy to help stabilize the
New Jersey economy and provide much needed support to the citizens of the State
in the fight against COVID-19.

���� 2.��� Copies
of this resolution, as filed with the Secretary of State, shall be transmitted
by the Clerk of the General Assembly or the Secretary of the Senate to
the
Office of the President of the United States, the Majority and Minority Leaders
of the United State Senate, the Speaker and Minority Leader of the United
States House of Representatives, and every member of Congress from this State.

STATEMENT

���� This resolution urges the
United States President and Congress to enact legislation forgiving community
disaster loans issued after Superstorm Sandy.

���� New Jersey has faced several
economic upheavals in recent years, from Superstorm Sandy in 2012 to the
current COVID-19 pandemic. These natural disasters have had a profound and
devastating impact on the economy of the State and its residents, with many still
struggling financially as a result of Superstorm Sandy to this day. The
COVID-19 pandemic has caused, and will continue to cause, increasing
uncertainty and economic disruptions throughout the State, which is the second
highest impact area in the United States for the novel coronavirus.�

���� Recently, the Federal
Emergency Management Agency (FEMA) has begun to press New Jersey municipalities
to start repaying the loans passed out to help the State recover
post-Superstorm Sandy. This mandatory repayment would have a devastating effect
throughout the State, as these demands come at a time when the State, like many
across the United States, is struggling to fight COVID-19. The payments on the
community disaster loans were originally assured to be allowed to be paid back
over time and slowly, with the possibility of forgiveness. Furthermore, New
Jersey residents who were granted loans under the �Small Business Act,� which
was passed to aid, counsel, assist and protect the interests of small
businesses through the creation of small business loans, now face the
possibility that they may be precluded from receiving further disaster relief
aid during the COVID-19 pandemic since any new grant issuances may be counted
as a duplicate benefit. The duplication of benefit policy was partially
abolished by the Department of Housing and Urban Development in February 2018
under the �Bipartisan Budget Act of 2018� and should be extended to funds
received following disasters dating to 2011, including Superstorm Sandy.

���� Rep. Chris Smith reintroduced
H.R. 6454 on April 3, 2020, which mandated forgiveness of certain community
disaster loans secured by New Jersey municipalities from FEMA to help with
Superstorm Sandy recovery. The bill also addressed the lingering duplication of
benefit problem by removing the receipt of small business loans as a
disqualifier for people who sought or received federal money to help them
recover in the wake of Superstorm Sandy. The passage of legislation like H.R.
6454 would have a profound impact throughout the State in helping stabilize the
economy and would provide much needed support to the citizens of the State in
the fight against COVID-19.