Small Business Administration says it is out of funding for disaster loans

WILMINGTON, N.C. (WECT) – One of the organizations recently authorized to help homeowners and business owners financially recover from Potential Tropical Cyclone 8 has run out of funding.

A spokesperson for the Small Business Administration (SBA) said they received their normal amount of funding this year, but the damage from Hurricane Helene in the western part of the state was so widespread and so unexpected that their budget has run out. More than 6,000 people applied for a loan from SBA.

“We have released information that our SBA funding has run out and that is due to the impact of Helene,” spokesperson Donika Farnham said. “You know, our funding is reserved at the beginning of the fiscal year, and Helene has hit six states, very broadly. Our resources have been spread thin. We are unable to disperse any funds which is unfortunate because there are people on the ground that are not getting the help that they deserve.”

The agency is requesting additional funding from Congress to be able to help serve more people, including those impacted by PTC 8, but Congress is in recess until November 12. They requested that Congress reconvene for an emergency session, which House Speaker Mike Johnson denied.

Farnham said the agency anticipates that Congress will pass the additional funding; it’s just going to take a while.

“This is emergency and disaster relief funding,” Farnham said. “So it’s usually a high priority and usually doesn’t have a lot of pushback.”

In the meantime, they are still encouraging people affected by PTC 8 to go ahead and apply for loans.

“That way they are in the queue because it still takes some time from application to disbursement to get those funds going,” Farnham said. “No one will be denied for our inability to pay out at this moment. We will have the funding, it’s just that we don’t have it at this time.”

If people need immediate assistance, Farnham says there are state agencies offering help:

As powerful storms become more and more frequent, Farnham says it might be time for the agency to get increased funding yearly.

That’s something that’s going to be taken into consideration for future funding,” Farnham said. “That, that these are not just rare extreme events but this might be the new norm, unfortunately. And we have to prepare for that as a nation.”]

There is a Disaster Loan Outreach Center with SBA workers in Brunswick County. People interested in the loan process are encouraged to apply there or ask questions. It closes permanently on Friday at noon.

Copyright 2024 WECT. All rights reserved.