The U.S. Small Business Administration (SBA) announced on Tuesday that its disaster loan program has run out of funds due to increased demand following Hurricanes Milton and Helene. As a result, the SBA is pausing new loan offers until Congress appropriates additional funds, which is not expected until it reconvenes on November 12.
“We know that swift financial relief can help communities recover quickly to stabilize local economies,” said SBA Administrator Isabel Casillas Guzman in a statement. “While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. SBA will continue to support homeowners, renters, businesses, and nonprofits in processing their applications to ensure they receive assistance quickly once funds are replenished.”
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President Joe Biden and SBA officials are encouraging individuals and small businesses affected by the hurricanes to continue applying for loans, assuring them that applications will still be processed. Speaker of the House Mike Johnson has indicated bipartisan support for replenishing disaster funding when Congress returns.
Hurricane Helene is believed to have killed at least 200 people across the southeastern United States, half of those victims in North Carolina alone. In the wake of the devastation, compounded by Hurricane Milton the following week, federal agencies including FEMA have exhausted all available funding, falling far short of what is needed to assist those affected by the storms.
The SBA has received approximately 37,000 applications for relief related to Hurricane Helene alone, highlighting the pressing need for funding to aid recovery efforts. The SBA’s loan program is essential for providing long-term, low-interest loans to support recovery from disasters.
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