Small Business Administration runs out of disaster loan funds after back-to-back hurricanes

The Small Business Administration has exhausted its disaster loan program funds following Hurricanes Helene and Milton, halting new loans until Congress allocates more money.

Jacob Bogage reports for The Washington Post.

In short:

• The SBA will pause new disaster loans until Congress replenishes funds, although applications are still being processed.
• Speaker Mike Johnson said disaster funding will be addressed after Congress returns in November, but stressed the administration has funds for immediate needs.
• The SBA has issued over $48 million in loans for Hurricane Helene and received 12,000 applications after Hurricane Milton.

Key quote:

“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.”

— President Joe Biden

Why this matters:

Millions of disaster survivors, businesses, and homeowners depend on SBA loans to rebuild. Delays in securing new funding could slow their recovery, compounding the impact of the storms.