SBA disaster loan

The SBA disaster loan program is out of funds after 50,000 applications following two hurricanes. Federal aid won’t be available until mid-November, leaving businesses and households in limbo. Highlights: Over 50,000 applications filed for SBA disaster loans, but funds are depleted. Aid won’t be available until after Congress reconvenes in mid-November. Small businesses and households are left struggling without immediate federal support. Date: October 18, 2024Location: Asheville, North Carolina After twin hurricanes wreaked havoc across the southeastern United States, the federal disaster fund managed by the Small Business Administration (SBA) has received over 50,000 applications for aid. However, there’s one major problem — the fund is completely out of money. The SBA’s disaster loan program, a critical source of low-interest loans for businesses, households, and nonprofits affected by natural disasters, is now financially depleted. Despite the overwhelming number of applications, new loans will not be available until Congress reconvenes in mid-November to approve additional funding. For local business owners like Lucious Wilson, who stood on a hill last month watching his Asheville brewery, Wedge Brewery, get swallowed by floodwaters from Hurricane Helene, the delay in aid has been devastating. A Long Wait for Relief Wilson said his business may never recover without federal financial support. “We need help, not politics,” Wilson told NBC News while standing near the ruins of his brewery. He, like thousands of others, is waiting for Congress to act. This delay underscores a growing problem — the federal government’s reliance on stopgap funding measures rather than long-term financial planning. The Biden administration has urged Congress to return early and approve new funds, but experts believe this is unlikely, with lawmakers focused on the upcoming November elections. This means businesses and households may not see any disaster aid until mid-November, leaving many in financial limbo. 50,000 Applications and Growing Despite the fund’s depletion, the SBA continues to encourage people impacted by the storms to apply for aid. While no money is currently available, officials say applications are being processed and loans could be approved within days once Congress replenishes the fund. To date, about 750 loans totaling $48 million have been approved, but the more than 50,000 pending applicants still wait anxiously. SBA Administrator Isabel Casillas Guzman offered reassurances this week, stating, “While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans.” But for individuals like Wilson, the waiting game is excruciating. He admits he’s reluctant to apply for a loan due to his precarious financial state and feels overwhelmed by the thought of rebuilding his business. “To be honest, I have a hard time thinking about it because it makes me cry,” Wilson said. As communities across the region continue to recover from the devastating hurricanes, all eyes are on Congress to see if they will move swiftly to provide the much-needed financial relief.