SBA disaster loan program out of money after hurricanes, Biden says
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President Biden speaking on Sunday in St. Pete Beach, Florida, which was impacted by Hurricane Milton. Photo: Joe Raedle/Getty Images
The Small Business Administration has "exhausted funds for its disaster loan program" following increased demand as officials respond to hurricanes Helene and Milton, the SBA announced Tuesday.
Why it matters: President Biden said in a statement shared with outlets including Axios that the program is "a critical lifeline to small businesses, homeowners, and renters affected by disasters."
- The SBA said in a statement that it's "pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors" unless Congress "appropriates additional funds."
What they're saying: "Speaker Johnson has promised that this and other disaster programs will be replenished when Congress returns, so Americans should continue to apply for these loans," said Biden in the statement, first shared with the Washington Post.
- "SBA will continue to process applications and will disburse loans as soon as Congress provides the needed funding."
Zoom in: Biden warned congressional leaders earlier this month that the program would run out of money "well before" Congress planned to reconvene.
- However, House Speaker Mike Johnson (R-La.) told CBS News Sunday it "can wait" because Congress had "appropriated $20 billion additional to FEMA," so the agency could "address immediate needs."
- The $20 billion was part of a stopgap government spending bill that extended funding until December at the previous year's spending levels, per Axios' Andrew Solender.
State of play: The SBA said its disaster centers and in-person staff "remain deployed across the country, and the agency will continue to accept new applications and ready borrowers to get their disaster loan offers as soon as possible once Congress appropriates" funds.
- "Disaster survivors in need of an SBA loan for personal belongings, residential property damage, and business damage and disruption should not wait to apply," the agency said.
- "Disaster survivors should start the application process immediately, regardless of SBA funding availability, so that our disaster teams can take them through the application process and position eligible applicants to receive offers and funds."
- Representatives for Johnson did not immediately respond to Axios' request for comment in the evening.
