SBA Disaster Loan Program Runs Out of Funds

The U.S. Small Business Administration (SBA) has announced that its disaster loan program has run out of funds due to increased demand following Hurricanes Milton and Helene. As a result, the SBA is pausing new loan offers until Congress appropriates additional funds, which is not expected until it reconvenes on November 12. However, President Biden and SBA officials are encouraging individuals and small businesses affected by the hurricanes to continue applying for loans, assuring them that applications will still be processed. Speaker of the House Mike Johnson has indicated bipartisan support for replenishing disaster funding when Congress returns. The SBA has received approximately 37,000 applications for relief related to Hurricane Helene alone, highlighting the pressing need for funding to aid recovery efforts. The SBA’s loan program is essential for providing long-term, low-interest loans to support recovery from disasters.