Small business disaster loan program is out of money until Congress approves new funds

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Small Business Administration News

Hurricane Helene,FEMA,Disaster Relief

NEW YORK (AP) — The Small Business Administration has run out of money for the disaster assistance loans it offers small businesses, homeowners and renters, ...

NEW YORK — The Small Business Administration has run out of money for the disaster assistance loans it offers small businesses, homeowners and renters, delaying much needed relief for people applying for aid in the wake of the destruction caused by Hurricanes Helene and Milton.There are other disaster relief programs available, including assistance from the Federal Emergency Management Agency, or FEMA. The FEMA aid isn't affected by the SBA shortfall.

“We know that swift financial relief can help communities recover quickly to stabilize local economies.” Guzman said in a statement. She added that the SBA will continue to process applications so assistance can be quickly disbursed once funds are replenished. The speaker has declined to recall lawmakers back to Washington to vote on aid in the aftermath of deadly hurricanes and declined to do so now. He said Congress is tracking this situation closely.

Businesses can access loans up to $2 million. Interest rates are as low as 4% for businesses and 3.25% for nonprofit organizations. FEMA Administrator Deanne Criswell has repeatedly said that the disaster relief fund has enough money to respond to Helene and Milton. But Criswell has said that the agency eventually will need supplemental funding from Congress. If that doesn’t happen, the agency would go into what’s called “immediate needs funding.” That means the agency stops paying out for previous disasters and conserves its money for life-saving missions during any new ones.

 

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