The Small Business Administration (SBA) has announced that it has depleted its disaster loan funds, leaving many homeowners and business owners affected by recent natural disasters without financial assistance. This situation arises following the extensive damage caused by Hurricane Helene and the subsequent impact of Potential Tropical Cyclone 8, which has led to over 6,000 loan applications.
Key Takeaways
- SBA has run out of disaster loan funding due to widespread damage from Hurricane Helene.
- Over 6,000 applications have been submitted, overwhelming the agency’s budget.
- SBA is seeking additional funding from Congress, which is currently in recess until November 12.
- A Disaster Loan Outreach Center is available for assistance in Brunswick County.
Background On The Funding Crisis
The SBA typically receives a set amount of funding at the beginning of each fiscal year. However, the unexpected severity of Hurricane Helene, which affected six states, has stretched the agency’s resources thin. Donika Farnham, a spokesperson for the SBA, emphasized the urgency of the situation, stating that the agency is unable to disburse any funds at this time.
“We have released information that our SBA funding has run out and that is due to the impact of Helene,” Farnham explained. “Our resources have been spread thin. We are unable to disperse any funds which is unfortunate because there are people on the ground that are not getting the help that they deserve.”
Congressional Response
In light of the funding depletion, the SBA has requested additional financial support from Congress. However, with Congress in recess until November 12, the agency’s plea for an emergency session was denied by House Speaker Mike Johnson. Despite this setback, Farnham remains optimistic that Congress will eventually pass the necessary funding, as disaster relief is typically a high priority.
Encouragement For Affected Individuals
While the SBA awaits additional funding, they are encouraging individuals affected by Potential Tropical Cyclone 8 to apply for loans. Farnham noted that applying now will ensure that applicants are in the queue for assistance once funds become available.
“No one will be denied for our inability to pay out at this moment. We will have the funding; it’s just that we don’t have it at this time,” she stated.
Alternative Assistance Options
For those in immediate need of assistance, state agencies are available to provide help. The SBA has also established a Disaster Loan Outreach Center in Brunswick County, where individuals can apply for loans and ask questions about the process. However, this center will close permanently on Friday at noon.
Looking Ahead
As natural disasters become increasingly frequent, Farnham suggests that the SBA may need to consider increasing its funding on an annual basis. She remarked, “These are not just rare extreme events but this might be the new norm, unfortunately. And we have to prepare for that as a nation.”
In conclusion, the depletion of disaster loan funds by the SBA highlights the urgent need for financial support in the wake of natural disasters. As the agency navigates this funding crisis, affected individuals are encouraged to apply for loans and seek assistance from state agencies while awaiting Congressional action.
