After a prolonged negotiation, Congress has successfully passed a continuing resolution (CR) that will keep the government funded through March 14, 2025. This resolution includes a significant allocation of approximately $100 billion aimed at assisting Americans recovering from various natural disasters that struck in 2023 and 2024. Among the critical components of this funding is $2.2 billion designated to replenish the U.S. Small Business Administration (SBA) disaster loan fund, which had been depleted due to the overwhelming number of applications following recent hurricanes.
Key Takeaways
- Congress passed a continuing resolution to fund the government through March 2025.
- $100 billion allocated for disaster recovery, including $2.2 billion for SBA loans.
- Thousands of businesses across multiple states are seeking assistance after hurricanes.
In October, the SBA announced that its disaster loan program had run out of funds, leaving many disaster survivors without access to low-interest, long-term loans. The agency reported receiving around 37,000 applications related to Hurricane Helene, with over 700 loan offers totaling approximately $48 million. Additionally, more than 12,000 applications have been submitted for Hurricane Milton, further straining the already depleted resources.
The lack of financial support has severely impacted businesses from Virginia to Florida. A notable example is the Virginia Creeper Trail, a vital economic asset in southwest Virginia, which has suffered extensive damage. Eighteen miles of the trail are currently closed, threatening the local economy that relies heavily on tourism.
Virginia Governor Glenn Youngkin highlighted the urgency of the situation, stating, “While local sections of the trail have reopened, the U.S. Forest Service-managed portion remains closed due to extensive damage, including the destruction of multiple trestles. The continued closure of the 17-mile section threatens the economic vitality of southwest Virginia, as tourism and related businesses depend on the trail’s accessibility.”
Local business owners like Michael Wright, who operates four businesses in the area, have felt the effects of the disaster acutely. After learning that SBA disaster loan funding was unavailable, he remarked, “I just put the SBA out of my mind and started cleaning up and trying to resurrect my business.”
Similarly, Ralph Wilson, who owns the Dragonfly Inn and the Damascus Diner, was forced to close two of his four businesses due to flooding from Hurricane Helene. With no access to SBA loans, he has been paying his employees out of pocket while seeking assistance elsewhere. Collectively, Wright and Wilson have had to lay off 67 employees, underscoring the widespread devastation across six states.
The dire circumstances prompted lawmakers from affected regions to advocate for the restoration of SBA disaster loan funding in the CR. Senator Thom Tillis (R-NC) emphasized the urgency of the situation, stating, “Asheville went 52 days without drinkable water. They just got it back two and a half weeks ago. It is a dire situation. It’s going to take years to recover, and we shouldn’t be playing games with people’s lives in western North Carolina, in Tennessee, Virginia, Georgia, South Carolina, Florida, all who were hit by Helene, Milton, and Debbie. We’ve got to do right by them and put politics aside.”
The bipartisan support for this funding reflects the critical nature of the issue, as lawmakers from both parties recognized the need for immediate action. While the CR has restored essential funding, there is a pressing need for the new Congress to ensure that the SBA has a more secure and consistent lifeline for businesses facing future disasters. This proactive approach will help prevent gaps in support when businesses are most vulnerable, safeguarding the livelihoods of countless Americans affected by natural disasters.
