By outdoor-nature-child.com In light of the devastating impacts of Hurricanes Helene and Milton on the Southeast states, the Small Business Administration (SBA) has exhausted its funds designated for small business relief. The agency’s future ability to assist hinges on congressional approval of new funding. House Speaker Johnson has promised strong support after the November elections.
According to AP reports, the SBA provides Economic Injury Disaster Loans to businesses and individuals affected by disasters. Earlier this month, they warned of a significant increase in loan applications due to damages from Hurricane Helene, indicating that funds could run out if Congress does not allocate additional resources.
There are still other disaster relief options available, such as assistance from the Federal Emergency Management Agency (FEMA), which will continue to aid those impacted regardless of the SBA’s funding shortfall.
Hurricane Helene, a Category 4 storm, first hit Florida on September 26, unleashing trillions of gallons of rain and causing widespread destruction across multiple states. Two weeks later, Hurricane Milton followed with further devastation.
So far, the SBA has received more than 37,000 applications for disaster relief related to Hurricane Helene, approving over 700 loans totaling around $48 million. In the wake of Hurricane Milton, there have been an additional 12,000 applications for assistance.
The SBA has paused the issuance of new loans until new funding is secured, meaning unprocessed loans will likely be delayed for at least a month. SBA Administrator Isabel Casillas Guzman stated that individuals can still apply for loans. She emphasized the importance of rapid financial assistance in helping communities recover and stabilize local economies, assuring that applications will continue to be processed and that aid can be quickly disbursed once funding is replenished.
Speaker Johnson committed to providing the necessary financial support once Congress reconvenes after the November elections. He acknowledged that the two consecutive hurricanes have strained the SBA’s funding programs, but assured that the Biden administration currently has the necessary disaster funds available to address the immediate needs of affected communities.
Johnson has declined calls for federal lawmakers to return to Washington to vote on additional relief for the hurricanes, saying that Congress is closely monitoring the situation. He noted that in just a few weeks, lawmakers will be back, enabling the SBA to accurately assess the required funding. He remains confident that both parties will prioritize support for the necessary allocations.