118. Task Force asked by Citizens to add SBA Declined Loan Public Law 115-123 to meeting agenda, request was never answered by the task force or state government.

  • 4-8-2019
  • 118

From: Aaron [mailto:a@hotmail.com]
Sent: Tuesday, August 21, 2018 12:16 PM
To: Johnny Bradberry

Subject: SBA Declined

Good afternoon,
My name is Aaron. I am writing you today in support of Mr. Murray Wennerlund's public input sent to you Thursday the 16th of August. I encourage you to place the solution for the SBA Declined loan issue on the Task Force agenda and to vote in favor of the policy to follow public law 115-123 as official state guidance for the estimated 3,800 Louisiana citizens that declined the SBA loan.
Thank you for your time.
Aaron

Baton Rouge La, 70816


From: Johnny Bradberry
Sent: Tuesday, August 21, 2018 2:00 PM
To: Lori Dupont

Subject: FW: SBA Declined

Lori,
FYI---Got this today----I have not received a communication on August 16th as indicated here. Please pass on to Pat for review.
Thanks,
Johnny B. Bradberry
Executive Assistant to the Governor for Coastal Activities
CPRA, Chairman
225-342-7669 phone

From: Adam Knapp
Sent: Wednesday, August 22, 2018 5:17 AM
To: Pat Forbes; Dan Rees
Subject: Fwd: SBA Declined

Another one of these

Begin forwarded message:
- - -
knapp@brac.org
(225) 278-3708

From: Jimmy Durbin
Sent: Thursday, August 23, 2018 7:19 AM
To: Lori Dupont

Subject: Fwd: SBA Declined

Lori,

FYI

Jimmy
Sent from my iPhone
Begin forwarded message:

From: Lori Dupont
Sent: Thursday, August 23, 2018 7:23 AM
To: 'Jimmy Durbin'

Subject: RE: SBA Declined

Thanks for forwarding to me, Mr. Durbin. We are currently working on a response and will include the TF members when we do.
Also, the next task force meeting is tentatively scheduled for Tuesday, September 25, in Ouachita Parish (this hasn't been announced and the actual location has not been decided on) – would you be able to travel to Ouachita on that day and chair the meeting?

Kindest Regards,
Lori Dupont
Executive Assistant to the Executive Director
Office of Community Development-Disaster Recovery Unit
State of Louisiana
225-342-1626

From: Jimmy Durbin
Sent: Thursday, August 23, 2018 5:16 PM
To: Lori Dupont

Subject: Re: SBA Declined

Yes, I am happy to do so. Please update me on the location.

Jimmy
Sent from my iPhone

From: Jimmy Durbin
Sent: Thursday, August 23, 2018 5:17 PM
To: Lori Dupont

Subject: Fwd: SBA Decline

FYI

Sent from my iPhone
Begin forwarded message:

From: Wallace Aultman
Date: August 23, 2018 at 1:37:18 PM CDT
To: "james.ted@legis.la.gov" , "poper@legis.la.gov" , "jimmydurbin@bellsouth.net" , "parich@lsu.edu" , "jrobideaux@lafayettela.gov" , "shawn.wilson@la.gov" , "olie.tyler@shreveportla.gov" , "don.pierson@la.gov" , "knapp@brac.org" , "johnny.bradberry@la.gov"

Subject: SBA Decline

I am writing to you today in support of Mr. Murray Wennerlund's public input sent to you Thursday the 16th of August. I encourage you to place the solution for the SBA Decline loan issue on the Task Force agenda and to vote in favor of the policy to follow public law 115-123 as official state guidance for the estimated 3,800 Louisiana citizens that Declined the SBA loan because it would have been a hardship on them financially.

Thank you for your time and consideration in this matter.
Wallace Aultman
.
Prairieville, LA 70769

Sent from Mail for Windows 10


States Response and Wennerlunds Proposal:

From: Lori Dupont on behalf of Pat Forbes
Sent: Thursday, August 30, 2018 11:19 AM
To: 'M W'
Cc: Adam Knapp; Commissioner Mike Strain; Darryl Gissel; Don Pierson; Dr. James Richardson; Shawn Wilson; Jacqui Vines Wyatt; Jimmy Durbin; John Gallagher; Johnny Bradberry; Mayor Dave Norris; Mayor Ollie Tyler; Mayor-President Joel Robideaux; Michael Faulk; Michael Olivier; Randy Clouatre; Representative Edward "Ted" James (2); Representative J. Rogers Pope; Representative Robert Shadoin; Roland Dartez; Sean Reilly; Senator Dan "Blade" Morrish; Aimee Richard; Arlene Adger; Barbara Marrable; Becky Perret; Cami Barlow; Enger Kinchen; Jane Lambert; 'Jayne Norton'; Julie Simms (jmullis@C100LA.org); Karen Brown; Karen White; Kimberly LaMotte; Michel Zambo; N Jarreau; Nancy Collie; Paine Gowen; Rhea Victorian; Rhonda Byrd; Sabrina Sentino; Susan Wassan

Subject: Murray Wennerlund, Task Force Public Input: Citizens Proposed SBA Disaster Federal Assistance Declined Solution

Attachments: CDBG-DR-Duplication-of-Benefit-Requirements-and-Provision-ofAssistance-with-SBA-Funds - Copy.pdf

Mr. Wennerlund,

Thank you for reaching out to the Restore Louisiana Task Force with both information and recommendations. As you know, the Governor and the Congressional delegation agree with your interpretation and have been working to correct this consideration of the SBA loans as a duplication of benefits. Unfortunately, we have, as yet, not received what we are looking for. Namely, either guidance from HUD clarifying that funds not drawn by an applicant do not count as DOB, or passage of federal legislation prohibiting federal agencies from counting loans as DOB. Until we get either of those, we are compelled by our obligation to spend the funds in compliance with HUD and other federal guidance. To not do so would put all the funds spent non-compliantly at risk of federal recapture.

The important distinction in this debate between the state and HUD is about the word "declined." HUD has so far insisted that “declined” means the homeowner never closed on the loan. We contend, like you, that "declined" means the funds were never drawn, regardless of whether the loan closed or not. Unfortunately, we must follow HUD's directions until they either change their interpretation, as requested by the Governor in April (http://gov.louisiana.gov/assets/docs/Letters/JBE-ltr-Carson-DOBApril-2018.pdf), or Congress passes the necessary legislation and the President signs it into law.

I mentioned above a letter from the Governor to the HUD Secretary about this matter. HUD's response to this letter references HUD's guidance of July 25, 2013 guidance. At this time, this guidance represents the rules we must follow. We are eager to assist those who have been approved for SBA loans and, as you've pointed out, have the funds available to do so. We are in complete agreement about the need to correct this issue, but it is not accurate to say that it is within our authority, under the current guidance, to provide funds to those who have been approved for an SBA loan and closed on that loan, regardless of whether they have drawn the funds or not. In short, changing our policy on SBA DOB requires a definitive change in directions from our funders in Washington, D.C.

We'd be glad to sit down with you and go over all these documents and correspondence if you like. And again, I thank you for your advocacy on this matter and look forward to being able to tell you soon that we've received the guidance we seek and are able to proceed with program policy changes.

Sincerely,
Pat Forbes

Research Resource:

Letter to Task Force Members: Task Force Public Input: Citizens Proposed
SBA Disaster Federal Assistance Declined Solution

EMail from Lori Dupont on behalf of Patrick Forbes.

NOTE: HUD's guidance of July 25, 2013 guidance

Editors Note: In most of the 1,158 discovered homeowners that could have had their SBA grants waived because they were declined by agency it is estimated that only a small number may not have qualified. It is not based on income as many would think but it is based on if the SBA funds are available to you. If the SBA declines you and you are listed as an agency decline you will not qualify for any funds even if you were approved in the beginning. The SBA can decline you at anytime in the process even after the loan amount is approved.

Research Resource:
Email: 2018.08.21.13.59.37-FW-SBA_Declined.pdf
Email: 2018.08.22.05.16.58-Fwd-SBA_Declined.pdf
Email: 2018.08.23.07.23.00-RE-SBA_Declined.pdf
Email: 2018.08.23.17.15.41-Re-SBA_Declined.pdf
Email: 2018.08.23.17.16.57-Fwd-SBA_Decline.pdf

Guidance on Duplication of Benefit Requirements and Provision of CDBG-DR Assistance:

Editors Note: Discovery via FOIA identified 1,158 of Agency Declined SBA loans. All or a major number of these homeowners would have been within the states Nov. 16, 2011 and July 25, 2013 Guidance if the state would have actually researched the claims made by Murray Wennerlund. The state published estimated number totally 109 homeowners that would qualify under the Guidance listed. Research found the 109 was not accurate and possibly as much as 1,158 homeowners incorrectly classified as having access to the SBA federal loan assistance but according to the SBA data they have been declined and are not able to receive SBA Loans as federal assistance.

Post Reference: Task Force Public Input: Citizens Proposed SBA Disaster Federal Assistance Declined Solution

EMail:
2018.08.30.11.19.00-Murray_Wennerlund_Task_Force_Public_Input-Citizens_Proposed_SBA_Disaster_Federal_Assistance_Declined_Solution.pdf
2018.08.30.19.58.48-Re-Murray_Wennerlund_Task_Force_Public_Input-Citizens_Proposed_SBA_Disaster_Federal_Assistance_Declined_Solution.pdf
2018.08.31.10.02.03-Re-Murray_Wennerlund_Task_Force_Public_Input-Citizens_Proposed_SBA_Disaster_Federal_Assistance_Declined_Solution.pdf


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