The Small Business Administration is at risk of running out of funds to support disaster loans for businesses affected by Hurricane Helene. The government is currently offering disaster loans for small businesses in several states that were impacted by the hurricane. However, President Joe Biden has warned that the funds could run out in a matter of weeks if more federal funding is not approved. Additionally, Hurricane Milton is approaching Florida, adding more urgency to the situation. The SBA has stated that if funding runs out, new loan offers will be delayed until the program is replenished.
In response to the potential funding shortfall, the U.S. Small Business Administration Administrator Isabel Casillas Guzman is calling on Congress to secure the necessary federal resources to continue providing affordable disaster loans to homeowners, renters, small businesses, and nonprofits. Business owners have until the end of November to apply for two types of disaster loans. The first type, business physical disaster loans, are for repairing or replacing disaster-damaged property, while economic injury disaster loans are working capital loans to help businesses meet financial obligations. The deadline for economic injury disaster loans is June 30, 2025.
Businesses can access loans up to $2 million with interest rates as low as 4% for businesses and 3.25% for nonprofit organizations. Homeowners can also apply for disaster loans of up to $500,000 to repair or replace damaged real estate, and up to $100,000 to repair or replace personal property. The SBA is urging business owners to apply for loans through their website, and more information can be found on their official disaster assistance page. Additionally, states like Florida are offering their own assistance programs, such as the Florida Small Business Emergency Bridge Loan Program, which provides loans of up to $50,000 for businesses impacted by Hurricane Helene.
With the looming threat of funds running out, the SBA is continuing to assist borrowers with loan processing and servicing. However, if federal funding is not approved soon, new loan offers may be delayed until the program is replenished. Business owners in states affected by Hurricane Helene are encouraged to apply for disaster loans before the end of November to access much-needed financial assistance for recovery. The SBA is working with Congress to secure the necessary federal resources to ensure that small businesses and homeowners receive the critical assistance they need during this challenging time.
