Can't get a loan, can't cash in on insurance

From the NY Post:

Hurricane Sandy victims are now getting socked by a wave of loan rejections.

Almost three-quarters of applications for federal emergency disaster-relief loans are being turned down, according to data from the Small Business Administration.

Out of 1,050 business-loan applications that have been processed, 767 have been rejected and only 283 have been approved, according to the SBA. Another 3,552 have not been processed.

Now, homeowners and small businesses are scrambling to recover without the funds.

And homeowners — who can apply for as much as $200,000 to help rebuild — face a rejection rate of 22 percent from the SBA.

So far, 6,864 of 30,613 of those applications were nixed, and 6,302 were approved.

SBA spokesman Michael Lampton said most loans are rejected because of poor credit scores, outstanding debt and the belief that the applicant won’t be able to pay it all back.He said the rejection rates in New York are similar to other disaster loans in other parts of the country.

And Grace Meng wants houses of worship to be covered by FEMA:

A number of houses of worship have applied for FEMA grants following Sandy’s visit to the five boroughs.

But they were denied aid because the federal government does not include houses of worship on a list of eligible organizations that qualify for disaster assistance.

The list includes zoos, museums, libraries, schools and performing arts centers.