Federal disaster loan program could run out of federal funding

A loan program for businesses and residents affected by disasters could run out of funding in a few weeks, according to the U.S. Small Business Administration. 

The SBA said its disaster loan program is likely to be depleted before the end of October. In a statement issued Saturday, the SBA urged Congress to comply with President Joe Biden’s request to replenish funding. Congress is scheduled to reconvene in mid-November.

The SBA has been serving people affected by Hurricane Helene in Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia in late September. Hurricane Milton dealt another blow to Florida on Wednesday. 

The agency said it would continue helping borrowers with initial processing and servicing their loans, but “if funding lapses, all new offers will be held back and delayed until program funding is replenished.”

“We look forward to working with Congress to secure the federal resources necessary to ensure the SBA can continue funding affordable disaster loans for homeowners, renters, small businesses, and nonprofits. Americans should not have to wait for critical assistance when they need it the most,” SBA Secretary Isabel Casillas Guzman said.

The agency offers low-interest loans of up to $500,000 for homeowners. Homeowners and renters are eligible for up to $100,000, and businesses can apply for loans up to $2 million.