In the wake of Hurricane Helene and Hurricane Milton, which have caused significant destruction across the southeastern states, the Small Business Administration (SBA) has exhausted its relief funds for small businesses. As things stand, unless Congress approves new funding, the SBA will be unable to continue its critical operations. House Speaker Johnson has stated that following the November elections, there will be strong support for the affected areas.
According to an Associated Press report, the SBA provides Economic Injury Disaster Loans to businesses and individuals impacted by natural disasters. Earlier this month, they warned that the number of loan applications would likely surge due to the damage caused by Hurricane Helene, and without additional congressional funding, they could soon run out of resources.
Other forms of disaster relief are still available, such as assistance from the Federal Emergency Management Agency (FEMA). It’s important to note that FEMA’s aid is not contingent on the SBA’s funding situation.
Hurricane Helene first hit Florida on September 26, unleashing trillions of gallons of rain and causing severe destruction over hundreds of miles and multiple states. Two weeks later, Hurricane Milton swept through Florida, compounding the destruction.
As of now, the SBA has received over 37,000 disaster relief applications due to Hurricane Helene, approving more than 700 loan cases totaling approximately $48 million. In addition, Hurricane Milton has resulted in 12,000 assistance requests.
The SBA has announced that it will halt new loan disbursements until new funding is secured, which means that any pending loans will be delayed for at least a month. SBA Administrator Isabel Casillas Guzman noted that although funding is on hold, individuals can continue to apply for loans. She emphasized the importance of rapid financial assistance in helping communities recover quickly and stabilize their local economies. The agency will keep processing applications so that loans can be issued promptly once funding is replenished.
Speaker Johnson assured that after the November elections, Congress will reconvene and provide the necessary support and funding. He acknowledged that the twin hurricanes have put significant strain on the SBA’s funding programs, but noted that the Biden administration already has the essential disaster relief funds to address the immediate needs of residents in affected areas.
Johnson has rejected calls for federal lawmakers to return to Washington, D.C., for a vote on aid for the aftermath of the hurricanes, asserting that Congress is closely monitoring the situation. He pointed out that in just a few weeks, members will be back, allowing the SBA to accurately assess the precise funding needs, and he expressed confidence that both parties will rally to provide the necessary funds.
