The Small Business Administration (SBA) has announced that it has depleted funds allocated for disaster assistance loans, resulting in delays for those seeking aid after Hurricanes Helene and Milton. The agency highlighted that the surge in demand following Hurricane Helene has exhausted available resources but assured that the loan application portal and disaster centers remain open and staffed.
The SBA encouraged disaster survivors to start the application process promptly, regardless of current funding, to prepare them for assistance when funds are replenished. SBA Administrator Isabel Casillas Guzman expressed the importance of swift financial relief in community recovery and urged eligible businesses and households to apply for loans. The agency is committed to processing applications for homeowners, renters, businesses, and nonprofits, ensuring readiness to assist once Congress provides additional funding.
President Biden had warned Congress earlier in the month about the projected exhaustion of disaster funds and called on them to pass the necessary emergency relief. Following the devastation caused by Hurricane Milton on Florida’s Gulf Coast, the President emphasized the federal responsibility to ensure adequate resources for disaster-hit communities.
Speaker of the House Mike Johnson, however, criticized the Biden administration, suggesting a lack of leadership in response to the hurricanes and claiming they were attempting to shift blame for the situation.
In reaction to the hurricanes, the SBA has processed about 49,000 relief applications, with 37,000 from Hurricane Helene and 12,000 from Hurricane Milton. So far, over 700 loans totaling approximately $48 million have been offered for Hurricane Helene.
The SBA provides disaster loans up to $500,000 for homeowners to repair or replace damaged property, up to $100,000 for personal property for homeowners and renters, and up to $2 million for businesses facing physical damage or economic disruption. Interest rates for these loans are as low as 2.813% for individuals, 3.25% for nonprofits, and 4% for businesses, with terms extending up to 30 years.
The situation remains under close scrutiny, and further comments from the White House, Speaker Johnson, and the SBA are pending.
