Bussiness
Small Business Administration Disaster Fund Has Run Out Of Money After Hurricanes Milton And Helene
Topline
The Small Business Administration’s disaster loan program has depleted its funds following two back-to-back hurricanes, the administration announced Tuesday, which will likely slow recovery operations—though people impacted by Hurricanes Milton and Helene were encouraged to keep applying for loans.
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Key Facts
The SBA said in a press release it is out of funds and will pause new direct loan offers to disaster survivors until Congress appropriates additional funds—though Congress is currently on recess until November.
The loan portal will remain open despite SBA having no funds, and people and small businesses in disaster areas are encouraged to continue applying for loans as the agency will keep processing their applications.
President Joe Biden echoed SBA’s recommendation that people should still apply for loans, saying in a statement House Speaker Mike Johnson, R-La., “has promised that this and other disaster programs will be replenished when Congress returns,” The Washington Post reported.
The SBA said despite there being no more funds, it may make “a small number of new loan offers during this time” from funds that become available through loan cancellations.
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Big Number
37,000. That’s about how many applications for relief the SBA received from people impacted by Hurricane Helene alone. SBA has given more than 700 loans to Helene victims that have totaled about $48 million. The administration said it’s received another 12,000 applications for people impacted by Hurricane Milton.
Key Background
SBA loans are long-term and have low interest rates, and are often used for things like debris removal, replacing or repairing damaged property or, for businesses, covering economic losses inflicted by natural disasters. Federal agencies like SBA and the Federal Emergency Management Agency have warned they may run out of funding soon after Hurricane Helene ravaged six southeastern states in late September. Helene, a Category 4 hurricane, made landfall in Florida’s Big Bend area on Sept. 26 and moved through Georgia before hitting Tennessee and North Carolina, which suffered much of the damage. North Carolina has continued to suffer for weeks after the storm as a number of major highways are still closed, the state saw around 120 people die, and 92 people are still missing, North Carolina Gov. Roy Cooper announced Tuesday. Just two weeks later, Hurricane Milton tore across Florida, leaving damage in parts of the state.
What To Watch For
If Congress reconvenes early to fund more disaster recovery. Biden wrote to congressional leaders in early October asking them to ensure no disaster loan programs run out of funding while Congress is in recess, which runs until Nov. 12.
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