Federal Taxpayer Loans Foot Bill for Damage Caused by Baltimore Riots

AP Photo/Patrick Semansky
AP Photo/Patrick Semansky
Washington, DC

Heritage Foundation Research Fellow David Muhlhausen is criticizing the U.S. Small Business Association for approving Maryland for a disaster loan.

“Typically, the SBA disaster loans are supposed to be used for disasters that are so serious in their nature that state and local governments are so overwhelmed. The Baltimore riots do not fulfill that category,” Muhlhausen tells Breitbart News.

Maryland Gov. Larry Hogan announced Monday that the U.S. Small Business Administration approved the state request for a disaster declaration, so Maryland residents may apply for a low-interest loan to repair damage caused by the Baltimore riots following the funeral of Freddie Gray, a black man who died while in police custody.

According to Muhlhausen, “After federally declared disasters, the Small Business Administration’s (SBA) Disaster Loan Program (DLP) offers taxpayer-funded direct loans to assist businesses, nonprofit organizations, homeowners, and renters in repairing or replacing property damaged or destroyed.”

Roughly 200 businesses were damaged during the rioting.

But Muhlhausen explains the federal government doesn’t have a reason to give businesses and disaster loans because the riots are isolated to a part of the city, and usually the loans are used for tornados and natural disasters.

“I don’t see how it’s an appropriate problem to rise to the level of federal action,” Muhlhausen added.

SBA also declared Ferguson, Missouri an economic disaster following the riots in the death of Michael Brown.


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