The SBA will halt its dispersion of loans until new funding is approved by Congress, which is out of session until Nov. 12. Officials have said that Congress will not be called back early despite the assistance of some to better deal with the back-to-back hurricanes.
The SBA assists renters, homeowners, and businesses recover after natural disasters. Those with existing loans will continue to receive payments, but no new loans can be issued.
Despite this, Biden encouraged those affected by the hurricanes to continue applying for loans. The applications will still be processed and be fulfilled as soon as funding is given.
“The Small Business Administration’s disaster loan program, which is a critical lifeline to small businesses, homeowners, and renters affected by disasters, has been exhausted,” Biden said in a statement, first shared with the Washington Post. “Speaker Johnson has promised that this and other disaster programs will be replenished when Congress returns, so Americans should continue to apply for these loans. SBA will continue to process applications and will disburse loans as soon as Congress provides the needed funding.”
The SBA assured those in dire need that it was still operational.
In a statement, it said that its disaster centers and in-person staff “remain deployed across the country, and the agency will continue to accept new applications and ready borrowers to get their disaster loan offers as soon as possible once Congress appropriates” funds.
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“Disaster survivors should start the application process immediately, regardless of SBA funding availability, so that our disaster teams can take them through the application process and position eligible applicants to receive offers and funds,” the SBA added.
The Southeast was hit with two deadly hurricanes over a short period, stretching the United States’s disaster response capabilities to its limit. Hurricanes Milton and Helene killed hundreds of people, making 2024 the deadliest hurricane season in years.