The Small Business Administration has run out of money for its disaster relief loans, delaying much-needed relief for people applying for assistance in the wake of the devastation caused by hurricanes Helene And Milton.
The SBA offers economic injury disaster loans to businesses and people affected by disasters. The organization previously said it expected funding to run out by the end of the month. Congress could approve more funds but won’t meet again until November 12.
The SBA said in a news release that “until Congress appropriates additional funds, the SBA is suspending new loan offerings for its direct, long-term, low-interest loans to disaster survivors.”
However, SBA Administrator Isabel Casillas Guzman said people should continue applying for the loans.
“While we wait for Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans,” Guzman said in a statement. “SBA will continue to support homeowners, renters, businesses and nonprofits as they process their applications to ensure they receive prompt assistance once funds are replenished.”
The SBA’s loan application portal remains open, the agency’s disaster centers and in-person staff remain deployed across the country, and it will continue to accept new applications and stand ready for borrowers to receive their disaster loan offers as soon as possible Congress has appropriated the funds.
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To date, the SBA has submitted approximately 37,000 applications for assistance from those affected by Hurricane Helene and 12,000 applications for those affected by Hurricane Milton. To date, the SBA has offered more than 700 Helene loans totaling approximately $48 million.
Various sources from the Biden administration and Congress CBS News had told last week that they feared the SBA fund would run out by the end of the month. This comes after Congress failed to include additional funding for the disaster relief fund past a short-term, three-month federal spending bill in September. Congress will not meet again until after the elections.
According to federal officials, the SBA provided nearly $3 billion in loans to disaster survivors in 2023, including more than $670 million for small businesses and more than $2.3 billion for homeowners and renters.
