Business Loan

The Small Business Administration’s disaster loan program is out of money, delaying critical assistance for thousands of people impacted by recent storms. The agency made the announcement on Tuesday after warning of a potential shortfall for weeks. It follows a surge in demand from Hurricanes Milton and Helene. The SBA’s long-term, low-interest loans are a critical lifeline for small businesses, homeowners and renters. The loans can be used for personal property losses, home damages, business repairs and economic injuries. Despite the funding lapse, the White House says survivors should apply immediately.”Americans should continue to apply for these loans, and SBA will continue to process them and disburse assistance as soon as Congress does its job and provides the needed funding, White House Press Secretary Karine Jean-Pierre said at a press conference on Wednesday. The SBA said, as of Tuesday evening, it had made 700 loan offers totaling about $48 million between the two storms. Officials say borrowers who already have a loan offer will continue to receive disbursements.The majority of applicants are still waiting on a determination. The SBA reported receiving 37,000 relief applications from Helene and another 12,000 from Milton as of Tuesday. “We need to have Congress act immediately to be able to replenish these dollars so that we can get checks to folks who are in need,” said SBA Administrator Isabel Casillas Guzman. House Speaker Mike Johnson said Congress is tracking the situation closely, but there are still no plans to bring lawmakers back to Capitol Hill before Election Day. Johnson added in a statement, “When members return in just a few short weeks, the Administration should have an accurate assessment of the actual dollar amount needed, and there will be strong bipartisan support to provide the necessary funding.”Rep. Jared Moskowitz, a Democrat from Florida, has already introduced a bill to send $8 billion to the SBA for relief efforts. Congress should have proactively funded the SBA and FEMA before going on a months-long recess during hurricane season, Moskowitz added in a press release. Joe Scully, a restaurant owner in hard-hit Asheville, North Carolina, is among those waiting for relief. He had to throw away thousands of dollars worth of food due to power outages, and one of his restaurants, Corner Kitchen, flooded to the second story during Helene. “It is just a skeleton of what it was, Scully said. “We believe that it will work out, but the delay is real.”Scully is calling on lawmakers to act with urgency. Waiting for the election to happen isnt going to help anyone, not them, not us, not the people that need the money right now to start their businesses, Scully said. If Congress approves additional funds, businesses may be eligible for loans of up to $2 million for physical damages and economic losses. Homeowners may be eligible for loans of up to $500,000 for damage repairs, while both homeowners and renters can get up to $100,000 for losses to personal property. For more information, visit sba.gov/disaster, call SBAs Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individual survivors are also encouraged to visit disasterassistance.gov for resources, including assistance from FEMA.