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. The SBA offers Economic Injury Disaster Loans to businesses and people affected by disasters, but the agency warned earlier this month that it could run out of funding, given the anticipated surge in claims from Hurricane Helene, without additional funding from Congress. There are other disaster relief programs available, including assistance from the Federal Emergency Management Agency. The FEMA aid isn't affected by the SBA shortfall, per the AP, though FEMA said before Milton that it was quickly running out of money.
So far, the SBA has received around 37,000 applications for relief from those impacted by Hurricane Helene and made more than 700 loan offers totaling about $48 million. It has received 12,000 applications from those impacted by Hurricane Milton. The SBA is pausing new loan offers until it gets more funding, which means loans offers that haven't already been made will be delayed by at least a month. SBA Administrator Isabel Casillas Guzman said people should keep applying, however. She noted that the SBA will continue to process applications, so assistance can be quickly disbursed once funds are replenished. The SBA said it may also be able to make a small number of new loan offers during this time. Businesses can access loans up to $2 million. Interest rates are as low as 4% for businesses and 3.25% for nonprofit organizations.
The SBA also offers disaster loans up to $500,000 to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property. FEMA Administrator Deanne Criswell has said its own disaster relief fund has enough money to respond to Helene and Milton, but that the agency eventually will need supplemental funding from Congress. Meanwhile, GOP House Speaker Mike Johnson said that although he doesn't plan to call for lawmakers to return to Capitol Hill before Nov. 12 to take action, once they have "an accurate assessment of the actual dollar amount needed ... there will be strong bipartisan support to provide the necessary funding," per Politico. For details about all government aid programs, visit www.disasterassistance.gov.
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