A federal disaster fund has 50,000 applications but has run out of money – NBC 6 South Florida

As the river began to rise in Asheville, North Carolina, last month, Lucious Wilson stood on a nearby hill and watched his brewery slowly disappear in the floodwaters of Hurricane Helene.

“We need help,” he told NBC News this week while standing near the ruins of his business, Wedge Brewery. “We don’t need politics.”

But a key source of federal aid may not be available to those affected by recent hurricanes any time soon. About 54,000 have applied for low-interest loans from a disaster fund administered by the Small Business Administration, but the money has dried up completely.

Biden administration officials are urging Congress to return several weeks early to approve new funding, but given the focus on the November election, that is unlikely, experts say.

That means applicants wouldn’t receive any money until Congress reconvenes on Nov. 12.

The situation highlights how federal programs have been impacted by the passage of emergency funding legislation in Congress, rather than one-year measures. According to the Congressional Research Service, the SBA disaster loan fund remains an important source of money for businesses devastated by natural disasters.

Despite the funding problems, administration officials have urged people affected by the storms to apply for loans. The SBA will continue to process and review loan applications so that the money can be made available as quickly as possible – most likely within four days for Congress to refill it, officials say.

“We know that rapid financial relief can help communities recover quickly and stabilize local economies,” SBA Administrator Isabel Casillas Guzman said Tuesday. “While we wait for Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. “

In an interview with NBC News “Meet the Press” host Kristen Welker on Sunday, House Speaker Mike Johnson said there will be no delay.

“Congress will leave no stone unturned for small business owners,” said Johnson, R-La., noting that it typically takes two weeks for applications to be approved and money to be paid out.

“We still have 23 days until the election,” he said. “I think this will coincide almost perfectly with when most of these applications even begin and many of them are being processed now.”

The more than 50,000 applicants include individuals, households, nonprofit groups and businesses. According to the SBA, about 750 people had been approved to receive loans totaling $48 million before the funds ran out.

The assistance will be provided in the form of low-interest loans “to repair, rebuild, and recover from uninsured, underinsured, or otherwise uncompensated economic losses following a declared disaster,” the agency said. The first repayment will be postponed for a year, the website says.

According to the agency’s inspector general, part of the program has been the subject of $78 billion in fraud during the pandemic. Since then, the SBA has taken steps to strengthen its review process, officials say.

Wilson, the owner of the Asheville brewery, said he is focused on getting his second location back up and running. Because of his precarious financial situation, he is hesitant to apply for an SBA loan.

Earlier this week, Wilson became emotional as he admitted he may never be able to rebuild his original company.

“To be honest, it’s hard for me to think about it,” he said, “because it makes me cry.”

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