Small Business Administration disaster loan program is out of money after back-to-back hurricanes

The Small Business Administration’s disaster loan program has run out of funding due to high demand from constant extreme weather disasters, the administration announced Tuesday.

The Small Business Administration’s disaster loan program has run out of funding due to high demand from constant extreme weather disasters, the administration announced Tuesday. In a statement, President Joe Biden called the SBA’s exhausted disaster loan program “a critical lifeline to small businesses, homeowners, and renters affected by disasters.” The SBA’s disaster fund running out of money could force Congress to address the dire situation with disaster relief funding once lawmakers return to Capitol Hill in November. “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,” Biden said in a statement, adding the SBA “will continue to process applications and will disburse loans as soon as Congress provides the needed funding.” The SBA’s fund is different than the Federal Emergency Management Agency’s disaster relief fund, which provides assistance to individuals impacted by hurricanes. FEMA’s fund stands at $8.5 billion as of Tuesday, a FEMA spokesperson told CNN. The SBA will pause new offers for its direct and low-interest long-term loans to disaster survivors until Congress approves more money for the fund, according to a news release. However, it is encouraging small business-owners impacted by Helene and Milton to continue applying for relief.