When Superstorm Sandy left Denise Erickson’s home with a collapsed foundation, a loan from the Small Business Administration looked like the best deal in town.

Kathy and Mark Michaels huddled in the attic of their Long Beach home as Superstorm Sandy turned streets into canals, ripped apart the iconic boardwalk, and snapped electrical lines. As blue police lights flashed in the howling wind, the acrid stench of burning buildings wafted through the air.