Disaster Assistance Delays: SBA Runs Out of Funds Amid Hurricanes Helene and Milton

The recent Category 4 hurricanes, Helene and Milton, have left a trail of destruction across the southeastern United States, necessitating extensive disaster relief efforts. However, a critical component of these effortsthe Small Business Administration's (SBA) disaster assistance loan programhas hit a snag. The SBA has run out of funds for its Economic Injury Disaster Loans (EIDLs), delaying much-needed financial relief for small businesses, homeowners, and renters affected by the storms.

According to recent reports, the SBA has exhausted its funding for new disaster loans after a surge in applications following Hurricane Helene. This development has left many applicants in limbo, awaiting congressional approval for additional funds to continue the loan program. The SBA has received around 37,000 applications for relief from those impacted by Hurricane Helene alone and has made over 700 loan offers totaling about $48 million. For those affected by Hurricane Milton, the SBA has received 12,000 applications, further straining the already depleted funds.

The SBA's loan program offers two types of disaster loans: Business Physical Disaster Loans and Economic Injury Disaster Loans. Business Physical Disaster Loans are designed to help businesses repair or replace disaster-damaged property, including real estate, inventories, supplies, machinery, and equipment. Economic Injury Disaster Loans provide working capital to help businesses meet financial obligations that cannot be met as a direct result of a disaster. These loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations.

The SBA's current funding shortage has prompted Administrator Isabel Casillas Guzman to encourage applicants to continue applying for loans. She emphasized that swift financial relief can help communities recover quickly and stabilize local economies. The SBA will continue to process applications so that assistance can be quickly disbursed once funds are replenished. Additionally, the SBA may make a small number of new loan offers if it receives more funds from loan cancellations or similar actions.

House Speaker Mike Johnson has assured that there will be strong support to provide necessary funds when Congress returns after the November election. He acknowledged that the devastating back-to-back storms have stressed the SBA funding program but emphasized that the Biden-Harris Administration has the necessary disaster funding right now to address immediate needs. However, he declined to recall lawmakers back to Washington to vote on aid in the aftermath of deadly hurricanes and instead stated that Congress is tracking this situation closely.

Despite the SBA's funding constraints, other disaster relief programs remain available. The Federal Emergency Management Agency (FEMA) offers various forms of aid, including financial assistance for home repairs, rental support, and reimbursement for lodging expenses for those displaced due to the disaster. FEMA's disaster relief fund is a pot of money used to respond to disasters, covering expenses such as debris removal and rebuilding public infrastructure damaged by disasters.

FEMA Administrator Deanne Criswell has repeatedly stated that the disaster relief fund has enough money to respond to Hurricanes Helene and Milton. However, she has also indicated that the agency will eventually need supplemental funding from Congress. If that doesn't happen, FEMA would go into what's called 'immediate needs funding,' which means stopping payments for previous disasters and conserving money for life-saving missions during new ones.

To apply for FEMA assistance, individuals can call the toll-free number 800-621-FEMA (3362), visit the online registration portal, or visit a Disaster Recovery Center in person. A comprehensive list of open centers can be found on the official FEMA website. Applicants must reside in an area declared a disaster zone and provide their Social Security number for identity verification. FEMA assistance covers home repair expenses that insurance does not cover and includes financial support for childcare expenses and medical bills related to injuries or illnesses caused by the disaster.

The state of Florida has its own official resources available for those in need. The federal website, DisasterAssistance.gov, is another valuable source for information on local assistance options. The Internal Revenue Service (IRS) is extending support to residents in FEMA-declared disaster areas, allowing taxpayers to file their individual and business tax returns and make tax payments later than usual. Additionally, those who have lost or damaged property in a federally declared disaster may be eligible to claim a casualty loss deduction, potentially increasing their refund.

In addition to these federal programs, state and local organizations, as well as nonprofits like the American Red Cross, offer assistance to disaster survivors. For instance, North Carolina authorities have arrested an armed man after threats against FEMA workers, highlighting the challenges faced by aid workers in some areas. Governor Cooper and FEMA officials have condemned misinformation and vowed to continue offering assistance in Western North Carolina despite these threats.

The Biden-Harris Administration has approved over $1.8 billion in federal assistance for individuals and communities affected by Hurricanes Helene and Milton. Disaster Recovery Centers have been opened across affected states to provide one-on-one help to survivors. For example, a Disaster Recovery Center opened in Jackson County to assist North Carolina survivors, while another center was opened in Coffee County to provide assistance to Georgians affected by Hurricane Helene.

As communities across the Southeast recover from the devastation caused by Hurricanes Milton and Helene, FEMA and the federal family continue to support those affected. Over 9,000 federal staff are on the ground under the direction of FEMA Administrator Deanne Criswell as they work tirelessly to address immediate needs. The agency remains fully committed to assisting survivors affected by both hurricanes.

In conclusion, while the SBA's funding shortage has delayed much-needed financial relief for many affected by Hurricanes Helene and Milton, other disaster relief programs continue to provide critical assistance. The resilience of communities in the face of these natural disasters is a testament to their strength and determination. As aid workers face challenges like misinformation and threats, it is crucial that they receive the support they need to continue their vital work.

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