FOR IMMEDIATE RELEASE: September 10, 2007
CONTACT: Richard Sheehe
(202) 315-5477                                         

ACADEMY REPORT MAKES POST-KATRINA RECOMMENDATIONS FOR SMALL BUSINESS ADMINISTRATION’S DISASTER ASSISTANCE PROGRAM
Academy Panel Findings Drive Improvements Underway at SBA 

Washington – The National Academy of Public Administration has released a report on the impact of Hurricane Katrina and the other Gulf Coast storms of 2005 on the U.S. Small Business Administration (SBA) and its Disaster Assistance Program.  The study, conducted by an Academy panel at the request of Congress and in collaboration with SBA, details the storm-related challenges faced by the agency and offers several recommendations to help SBA better cope with future megadisasters on the scale of Katrina.

The Academy’s findings and recommendations are already driving changes at SBA.

“SBA values the panel’s recommendations and looks forward to performing as a better prepared, more responsive and customer-friendly agency,” said SBA Administrator Steve Preston.  “NAPA’s report makes 16 recommendations regarding the agency’s business processes and loan program structure. I’m happy to report that SBA has already implemented or is considering all 16 recommendations.”

Major Academy recommendations for SBA on preparing for megadisasters like Katrina include simplifying loan processes; optimizing technology to handle increased workload; improving communications between SBA district, regional and branch offices; and establishing a pilot program to engage private sector banks and other financial institutions to help handle the surge of loan applications that come with a mega-disaster.

While Katrina and its aftermath strained the capacities of many government agencies, the Academy study found that the SBA was hit particularly hard in a number of ways. The report, “Preparing for Catastrophe: Management Review of the Small Business Administration Disaster Assistance Program,” details how Katrina struck before the organization could fully implement technology upgrades that were underway, and how SBA received a huge number of applications for loans by residents who had lost their homes.

“People don’t think of the Small Business Administration as a home loan agency, but in disasters most of the loans they make, in fact, are to help people reestablish their homes,” said Academy Fellow Tom Stanton, who chaired the panel that conducted the study and drafted the report. “What happened in Katrina was that it totally overwhelmed the capacities of the SBA and its systems.”  He added that SBA’s disaster assistance operations over the past decade had been timely and effective in so-called “normal” disasters.

Audio Commentary: Academy Fellow and Study Panel Chair Tom Stanton discusses Katrina’s impact on SBA and some recommended steps for improvement (2:01)  

Audio Commentary: SBA Administrator Steve Preston explains how Academy recommendations are driving changes at the agency (3:05) 

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The National Academy of Public Administration is an independent, non-partisan, non-profit corporation chartered by Congress to provide trusted advice to government agencies on issues of governance and public management.  Under its Congressional charter, the Academy is charged with advancing the effectiveness of government at all levels—federal, state and local. For more information about the National Academy of Public Administration, visit http://www.napawash.org.