The Small Business Administration ran out of money after hurricanes Helene and Milton
Fox News reporter Chad Pergram reports on FEMA disaster relief requests swirling around Capitol Hill.
The Small Business Administration (SBA) has run out of money for disaster relief loans, delaying much-needed aid to people applying for aid following hurricanes Helene and Milton, the federal agency announced Tuesday.
In a press release, the SBA said the funds “were exhausted” following “increased demand from Hurricane Helene.”
The organization noted that its loan application portal remains open and its disaster centers across the country remain staffed.
“The survivors of the disaster must start application process quickly, regardless of SBA’s availability, so that our crisis teams can advance applications and place eligible applicants for grants and funding,” the SBA said.
“We know that immediate financial assistance can help communities recover quickly to stabilize local economies,” said SBA Administrator Isabel Casillas Guzman. “While 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 support homeowners, employers, businesses and nonprofits in processing their applications to ensure that they receive assistance as soon as funds are completed.”
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President Biden surveyed the damage caused by Hurricane Milton in Florida over the weekend. (Getty Images / Getty Images)
President Biden said Congress must return to provide emergency aid after Hurricane Milton wreaked havoc on Florida’s Gulf Coast. (Aaron Schwartz/Sipa/Bloomberg via Getty Images/Getty Images)
Earlier this month, Biden sent a letter to Congress, warning that the SBA “will run out of funding within weeks and before Congress reconvenes.”
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“As leaders, we have a responsibility to ensure that everyone in communities affected by natural disasters will have the Federal resources they need and deserve to respond to and recover from deadly hurricanes and other natural disasters,” Biden said.
Speaker of the House Mike Johnson, R-La., speaks to reporters at the US Capitol in Washington, DC (Tom Williams/CQ-Roll Call, Inc via Getty Images/Getty Images)
House Speaker Mike Johnson, R-La., dismissed Biden’s assertion that Congress is responsible, saying the Biden/Harris administration was “cynical.”
“They’re trying to cover up their big mistakes and mistakes. And there’s an effort to blame others or blame situations where this is a lack of leadership and accountability,” Johnson said in a previous interview with Fox News Digital.
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He noted that Homeland Security Secretary Alejandro Mayorkas said in July that FEMA is “extremely prepared” for this year’s weather.
Aerial view of damaged and destroyed buildings after Hurricane Helene in Bat Cave, NC (Photos by Mario Tama/Getty/Getty Images)
Since hurricanes Helene and Milton, the SBA has seen nearly 49,000 applications for assistance submitted. Hurricane Helene had 37,000 claims, while Hurricane Milton saw 12,000.
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To date, the SBA has made more than 700 Helene loans totaling $48 million.
Mallory Tollett, 12, comforts her dog, Maggie, after a suspected tornado passed through her family’s home in Port Salerno, Fla., when Hurricane Milton made landfall last week. (Crystal Vander Weit/USA TODAY NETWORK via Reuters/Reuters)
The agency said they can provide disaster loans of up to $500,000 to homeowners to repair or replace damaged or destroyed properties.
Homeowners and tenants may be eligible for up to $100,000 to repair or replace damaged or destroyed personal property, and businesses may be eligible for up to $2 million in loans for both physical injury and economic damage due to business interruption.
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The SBA said interest rates are as low as 2.813% for homeowners and renters, 3.25% for nonprofits and 4% for businesses – with terms up to 30 years.
Fox News Digital has reached out to the White House, Johnson and the SBA for comment.
Fox News Digital’s Elizabeth Elkind contributed to this report.
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