Small Business Administration Will Soon Exhaust Disaster Loan Funds

The Small Business Administration (SBA) anticipates that its disaster loan funding for homeowners and businesses impacted by Hurricane Helene will run out soon. With under $100 million available, the SBA will continue to process applications, but new funding from Congress is needed to issue new loans and checks. As Hurricane Milton approaches the Gulf of Mexico, this funding shortage presents a significant challenge. 

SBA's administrator voiced concerns about diminished support capacity and stressed the urgency for congressional action before the funding depletes. The agency highlighted the potential delays in recovery efforts for families rebuilding homes and businesses resuming operations if funds are not replenished. Last week, a letter urged Congress to restore funding, emphasizing that significant disaster programs should not face a funding shortfall during the recess period.

A new bill aims to secure additional funding for the SBA to handle the aftermath of the hurricanes. The SBA previously requested $1.6 billion for the fiscal year, but officials now anticipate needing more due to Hurricane Milton's impact. The SBA's disaster relief programs offer low-interest loans for affected residents and business entities, providing critical support for recovery.

The president has been pressing Congress to approve further disaster relief funds amidst concerns about FEMA's potential shortfall by year-end. Without extra funding, FEMA may have to prioritize immediate needs over long-term recovery. Disaster relief resources are essential for stabilizing communities, and there's an urgent need for replenishment to ensure effective and timely disaster response and recovery.