SBA Disaster Loan Program Faces Funding Shortage

The Biden-Harris administration announced that the Small Business Administration's disaster loan program has run out of funds due to high demand following Hurricanes Helene and Milton. President Biden referred to the program as a vital resource for affected small businesses, homeowners, and renters, encouraging applicants to continue despite the funding shortfall. House Speaker Mike Johnson acknowledged the strain on the program but asserted that Congress could replenish the funds upon reconvening on November 12. The SBA has received approximately 49,000 applications from disaster survivors but will pause new loan offers until additional funding is approved. Meanwhile, FEMA's disaster relief fund remains intact, with $8.5 billion available to assist individuals impacted by the hurricanes. The situation underscores the urgency for Congress to address disaster relief funding amidst increasing extreme weather events.