The Small Business Administration has announced that they have run out of funds for disaster assistance loans for small businesses, homeowners, and renters due to the surge in claims from Hurricanes Helene and Milton. This delay in funding is causing relief efforts to be postponed for those impacted by the recent hurricanes. The SBA offers Economic Injury Disaster Loans to assist those affected by disasters, but without additional funding, new loan offers will be delayed by at least a month. The FEMA aid is not affected by the SBA shortfall, providing an alternative option for assistance.
Despite the lack of funding, the SBA has received a significant number of applications for relief from those impacted by Hurricane Helene and Hurricane Milton. The SBA has made over 700 loan offers totaling about $48 million for Helene and received 12,000 applications for Milton. However, new loan offers will be on hold until the SBA receives more funding. SBA Administrator Isabel Casillas Guzman has encouraged people to continue applying for loans, as the SBA will continue to process applications to quickly disburse assistance once funds are replenished. The SBA may be able to make a small number of new loan offers if additional funds become available.
House Speaker Mike Johnson has expressed strong support in providing the necessary funds for disaster relief once Congress returns after the November election. The Biden-Harris Administration has been urged to utilize available disaster funding to address the immediate needs of those affected by the hurricanes. The SBA offers two types of disaster loans: business physical disaster loans for repairing or replacing damaged property, and economic injury disaster loans for working capital needs. The loans are available to small businesses, agricultural cooperatives, and non-profit organizations impacted by disasters.
Individuals impacted by disasters can also access disaster loans through the SBA, with homeowners eligible for up to $500,000 and renters up to $100,000 to repair or replace damaged property. FEMA’s disaster relief fund provides additional support for disaster response efforts, including funding for debris removal, infrastructure repair, and direct financial assistance to disaster survivors. While FEMA Administrator Deanne Criswell has stated that there is enough funding for the immediate response to hurricanes Helene and Milton, Congress may need to provide supplemental funding in the future.
Despite the funding challenges, the SBA and FEMA remain committed to assisting those affected by the recent hurricanes. Individuals seeking assistance can visit disasterassistance.gov for more information on available aid programs from the government. The situation is being closely monitored by Congress, and support is expected to be provided to ensure that relief efforts can continue effectively. The SBA and FEMA are working to expedite the disbursement of assistance once additional funding is secured.
