Washington, D.C. — The Small Business Administration (SBA) has announced that its disaster loan program has officially run out of funds, causing significant delays in aid for individuals affected by Hurricanes Milton and Helene. The agency revealed this critical development on Tuesday, following weeks of warnings about an impending shortfall exacerbated by a surge in applications stemming from the recent hurricanes.
The SBA’s disaster loans, which offer long-term, low-interest financial assistance, are vital for small businesses, homeowners, and renters recovering from personal property damage, home repairs, and economic injuries. Despite the funding crisis, the White House encourages survivors to continue submitting their applications.
“Americans should proceed with their loan applications. The SBA will keep processing them and will disburse assistance promptly once Congress allocates the necessary funds,” White House Press Secretary Karine Jean-Pierre stated during a press briefing on Wednesday.
As of Tuesday evening, the SBA reported that it had extended approximately 700 loan offers totaling around $48 million related to the two hurricanes. However, many applicants are still awaiting a determination on their requests. The SBA disclosed it has received around 37,000 applications for relief due to Hurricane Helene and an additional 12,000 from Hurricane Milton.
SBA Administrator Isabel Casillas Guzman stressed the urgency for Congress to act swiftly to replenish the program’s funds. “We need Congress to take immediate action to ensure we can provide checks to those in need,” Guzman stated.
House Speaker Mike Johnson noted that Congress is monitoring the situation closely, though no plans have been made to reconvene lawmakers before the upcoming Election Day. In a statement, Johnson remarked, “When members return in just a few short weeks, the Administration should have a precise assessment of the funding required, and there will be strong bipartisan support to provide the necessary assistance.”
Democratic Representative Jared Moskowitz from Florida has already introduced legislation proposing an allocation of $8 billion to the SBA for disaster relief. “Congress should have proactively funded the SBA and FEMA prior to the months-long recess during hurricane season,” Moskowitz remarked in a recent press release.
Among those anxiously awaiting aid is Joe Scully, a restaurant owner in Asheville, North Carolina, which was severely impacted by the storms. After suffering extensive losses, including having to dispose of thousands of dollars worth of food due to power outages, Scully’s establishment, Corner Kitchen, experienced flooding that reached the second story during Hurricane Helene.
“It’s just a shell of what it used to be,” Scully lamented. “We believe it will work out, but the delays are tangible.”
Scully has called for immediate action from lawmakers, stating, “Waiting for the election to conclude won’t help anyone—not them, not us, and certainly not the individuals who require funds to restart their businesses.”
If Congress approves additional funding, businesses may be eligible for loans of up to $2 million to cover physical damage and economic losses. Homeowners could qualify for loans up to $500,000 for repairs, while both homeowners and renters can seek up to $100,000 for personal property losses.
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