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Residents, small business owners may turn to short term loans in the wake of Sandy

Nov 14, 2012 Quinn Thomas

It has been two weeks since Hurricane Sandy tore its path of destruction up the U.S.. East Coast, leaving over 110 people dead in the United States. In some of the hardest hit areas of New Jersey, New York City and Long Island, residents and business owners have not yet been able to fully access properties so that monetary damages may be assessed. Alternative short term loans While interest-free loans and relief from FEMA and other government organizations may help these individuals and families in their recovery, there simply may not be sufficient resources to help those affected recoup their losses. Financial institutions, affected by changes in the legitimacy of overdraft fees as well as the damage of the present credit crunch have been increasing focus on short term lending as a means to drive revenue and secure current and future investments. Alternative loan sources such as short term loans may be a crucial option for some individuals seeking temporary relief. Short term lenders in affected areas are likely to see an increased need by small business owners and individuals who have lost property for urgent recovery. For these people, awaiting federal aid may take too long. Federal programs flooded Further, The New York Times is reporting that there are excessive strains being put on federal flood assistance programs, which have struggled to stabilize following the devastation that Hurricane Katrina brought to the Gulf Coast in 2005. The Times reports that 110,000 Sandy-related claims have been filed with the National Flood Insurance Program, which may equate to $7 billion: a potentially insurmountable deficit for the program. Therefore, those whose flood insurance coverage does not meet their losses and those who lack flood insurance altogether may have to seek out short term loans. Lending firms will need to consider the magnitude of loss in comparison to consumer credit data in order to determine how these short term loans can be sound for the institution and mutually beneficial to the full recoveries of communities along the East Coast. Lenders who want to quickly aid in focused recovery efforts may also consider the implementation of alternative credit data to help better qualify Sandy's victims for the credit they need.