Oct. 15 (UPI) — The Small Business Administration has no money left to cover disaster loans, but President Joe Biden said that will change in November.
Officials for the SBA on Tuesday announced it no longer has money available to cover disaster assistance loans after SBA Administrator Isabel Guzman last week cautioned Congressional members the SBA had less than $50 million left in its disaster loan fund.
Guzman warned of the impending loan shortfall before Hurricane Milton made landfall in Florida Wednesday night, but Biden said people should continue applying for SBA loans.
“Speaker [Mike] Johnson has promised that this and other disaster programs will be replenished when Congress returns, so Americans should continue to apply for the loans,” Biden said Tuesday in a prepared statement.
Biden said the SBA will continue to process applications and will disburse the loan funds after Congress reconvenes on Nov.12 and replenishes the fund.
The SBA fund differs from the Federal Emergency Management Agency’s disaster relief program that provides assistance for individuals.
The SBA program provides low-interest direct loans to eligible business and households.
“SBA will continue to support homeowners, renters, businesses and nonprofits in processing their applications to ensure they receive assistance quickly once funds are replenished,” Guzman said.
Johnson, R-La., on Thursday said hurricanes Helene and Milton “stressed the SBA funding program” but said SBA has the funding needed to “address the immediate needs of American people in these hurricane-affected areas” until Congress reconvenes.
“When members return in just a few short weeks, the administration should have an accurate assessment of the actual dollar amount needed and there will be strong bipartisan support to provide the necessary funding,” Johnson said.
The Biden administration estimates the SBA needs $1.6 billion after the dual hurricanes devastated large areas of Florida and the southeastern United States.
Senate Majority Leader Chuck Schumer, D-N.Y., said his office is awaiting estimates on needed funding from federal agencies and is monitoring the situation.
