Small business disaster loan program is out of money until Congress approves new funds

abcnews.go.com:

The Small Business Administration has run out of money for its disaster assistance loans, delaying much needed relief for people applying for aid in the wake of the destruction caused by Hurricanes Helene and Milton

NEW YORK — The Small Business Administration has run out of money for the disaster assistance loans it offers small businesses, homeowners and renters, delaying much needed relief for people applying for aid in the wake of the destruction caused by Hurricanes Helene and Milton.

The SBA offers Economic Injury Disaster Loans to businesses and people affected by disasters. The SBA warned earlier this month that it could run out of funding, given the anticipated surge in claims from Hurricane Helene, without additional funding from Congress.

There are other disaster relief programs available, including assistance from the Federal Emergency Management Agency, or FEMA. The FEMA aid isn't affected by the SBA shortfall.

Helene was a Category 4 storm that first struck Florida’s Gulf Coast on September 26, dumped trillions of gallons of rain and left a trail of destruction for hundreds of miles across several states. Hurricane Milton swept across Florida two weeks later.

So far, the SBA has received around 37,000 applications for relief from those impacted by Hurricane Helene and made more than 700 loan offers totaling about $48 million. It has received 12,000 applications from those impacted by Hurricane Milton.

The SBA is pausing new loan offers until it gets more funding, which means loans that have not already been offered will be delayed by at least a month. SBA Administrator Isabel Casillas Guzman said people should keep applying for the loans, however.

“We know that swift financial relief can help