SBA Pauses Disaster Loan Offers as Funds Run Out Amid Hurricane Helene Aftermath

In a recent announcement, the Small Business Administration (SBA) revealed that funds for its disaster loan program have been fully allocated concerning the recent Hurricane Helene. This unfortunate development comes amid an increased demand for assistance due to the devastating impact of the hurricane, which resulted in the loss of over 200 lives across six states, with North Carolina bearing almost half the casualties.

Impact on Disaster Survivors

In light of the exhaustion of funds, the SBA has taken the necessary step of pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors. This measure is in effect until Congress appropriates additional funds to replenish the program. The announcement aims to provide clarity to individuals and small businesses affected by the hurricane while emphasizing the need for further financial support from the legislative body.

Despite the temporary halt on new loan offers, the SBA is encouraging affected individuals and businesses to continue submitting applications for loans. This proactive approach comes with assurances from congressional leaders that additional funding will be allocated upon their return in November. The SBA is urging applicants not to hesitate in seeking aid despite the current funding limitations.

President Biden's Call to Action

President Joe Biden has acknowledged the pressing need for disaster relief funding and has expressed his belief that Congress should reconvene to address these needs promptly. The President's call to action underscores the urgency of providing assistance to those adversely affected by Hurricane Helene and highlights the importance of swift legislative action to secure necessary funds.

Legislative Timeline

It is worth noting that members of the House of Representatives and Senate are scheduled to resume their duties in Washington after the upcoming Nov. 5 election. The delay in congressional activities raises concerns about the timeline for securing additional funding for disaster relief, potentially prolonging the hardships faced by affected individuals and businesses.