“No more money” for US disaster loans after double hurricane hit

With more than 40,000 loan applications pending from businesses and households, the SBA said Tuesday (Oct. 15) that funds for its direct, low-interest, long-term loans had been “exhausted” due to demand for Helene alone.

Congress needs to appropriate more money, but Congress went into recess on September 28th ahead of the November 5th election and is not scheduled to reconvene until November 12th.

The SBA is still encouraging people and businesses to apply for loans and says it has received “assurances from congressional leaders” that additional funding will be made available once Congress returns.

On October 4, President Joe Biden wrote to House Speaker Mike Johnson and other congressional leaders urging them to immediately provide funding for the SBA.

“I warned Congress about this potential shortfall even before Hurricane Helene made landfall on America’s shores,” he wrote, adding that he has “requested more SBA funding several times in recent months.”

The SBA can provide disaster loans of up to $500,000 to homeowners to repair or replace damaged property.

Homeowners and renters may be eligible for up to $100,000 to repair or replace personal property.

Businesses may be eligible for loans of up to $2 million for physical and economic damages caused by business interruptions.

Interest rates are as low as 4% for businesses, 3.25% for nonprofits, and 2.813% for homeowners and renters, with no credit elsewhere, and terms are up to 30 years.

SBA said it received 37,000 applications for assistance related to Hurricane Helene alone. 700 Helene loans have already been offered with a total value of $48 million.

The SBA has received around 12,000 applications so far for Hurricane Milton.

Those who already have a loan offer will continue to receive payments, the agency said.

It states that disaster survivors “should begin the application process immediately, regardless of the availability of SBA funds” so that applicants can be guided through the vetting process.

“We know that rapid financial relief can help communities recover quickly and stabilize local economies,” said Administrator Isabel Casillas Guzman.

“As we wait for Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. The SBA will continue to assist homeowners, renters, businesses and nonprofits in processing their applications to ensure they receive rapid assistance once funds are replenished.”