After a disaster like Katrina, a community finds itself confronting problems that may threaten its very survival. Even when the storm or tornado or earthquake has passed, the economic devastation can cripple a community, uprooting lives, forcing many people to move away even though their homes survived. Small businesses are especially vulnerable, and their survival is a crucial factor in determining whether people will be able to pick up the pieces of their lives and whether their community will truly recover.
Senator Kerry is a passionate advocate for small businesses, which are -- as he never ceases to point out -- the lifeblood of the nation's economy, providing half of the jobs in this country and more than half of the newly-created jobs. Quite simply, whatever threatens the health of small businesses threatens communities and threatens our national economy. As chair of the Senate Committee on Small Business and Entrepreneurship, Senator Kerry has worked tirelessly to improve and streamline the processes by which aid reaches small businesses after a disaster, and convened hearings such as this one to evaluate the mechanisms in place, to investigate problems such as the failures after Katrina, and to determine the improvements that still need to be made.
For anyone who has been concerned about what the federal government did or didn't do after Katrina, FEMA isn't the only agency that people count on to help them after a disaster; the Small Business Administration's role is vital to the economic survival of a community, and hearings like this one go to the heart of concerns about whether the government is prepared to do its part for the people who are counting on it to be there. Senator Kerry emphasizes however that this is not intended as a "gotcha" hearing, but as an opportunity to learn from mistakes and to look at what is done right as well as what has gone wrong -- contrasting the slow and inadequate response after Katrina with the rapid response to the recent disastrous fire in Uxbridge, MA, for example.
Here we present Senator Kerry's opening remarks, which you can also read in the transcript below.

Part One
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Senator Kerry's Opening Statement on Oversight Hearing on Gulf Coast Disaster Loans and the Future of the Disaster Loan Program
Wednesday, July 25, 2007
We’re here today to take a close look at the SBA’s Disaster Assistance Program. Obviously, this program serves as the Federal government’s primary source of long term financial assistance to small businesses that have been hit by a disaster of one kind or another.
We became all too familiar a couple years ago with the problems of the lack of adequate planning, the lack of adequate staffing, and other kinds of problems that accompanied the massive failure of delivery of services across the board in the wake of Katrina. And that taught us something. I think a lot of people, however, are unaware of how frequently the SBA does respond to various disasters around the country, some small, some large. And in fact, the SBA’s Disaster Assistance program plays an integral role in rebuilding homes and towns, businesses in communities all across the country.
My hometown – not hometown personally, but in my home state - Uxbridge – recently, just over this weekend experienced a serious mill fire, and some 135 homes and businesses were destroyed, a lot of damage done, some 300 jobs plus lost, and this mill had become a major magnet, if you will, for business in this community that’s been hurt over the last years by businesses going abroad and the transition of our economy anyway. So SBA stepped in, and I want to thank Administrator Preston for a fast response of the Agency. Agency personnel were on the spot Sunday afternoon for a fire that occurred on Saturday, they did their evaluation, and by Monday we had a designation and were able to move. And that’s terrific. That’s an important message to send to people, that’s the way it ought to work.
Not every disaster can receive or does receive the same kind of response, and certainly there are some where we haven’t seen that. Next month marks the two-year anniversary of the most devastating natural disaster that we know of in the history of this country. The impact of Hurricane Katrina was nothing less than catastrophic on the state of Louisiana and on surrounding communities and Mississippi also. Thousands were killed, hundreds of thousands were displaced, and many of them are still struggling to recover from the impact of that.
At every step during the response and recovery process, the federal government was shown to be behind the process, unprepared and unable to respond. And I want to emphasize this is not Administrator Preston’s watch. He came in to try to clean up some of this, and I think he’s done an admirable job of trying to tackle a lot of that.
But at no agency was the lack of preparedness more evident, or incompetent, frankly, than what happened within the SBA. Insufficient staffing, slow response, lack of coordination, lack of leadership, lack of vision and inadequate processing system led to the agency’s absolute failure to respond to the needs of Gulf Coast applicants.
Nearly eight months after the storms hit—Mr. Preston’s predecessor resigned, leaving an enormous mess to clean up, frankly. On that day, more than 31,000 loan applications remained unprocessed and just 10 percent of the money that was approved for disaster victims had actually been disbursed.