WASHINGTON — The U.S. Small Business Administration reports that it has exhausted funds for its disaster loan program after warnings that funding would soon run out following increased demand from Hurricane Helene.
Until Congress appropriates additional funds, the SBA is pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors. However, it’s encouraging individuals and small businesses to continue to apply for loans given assurances from congressional leaders that additional funding will be provided upon Congress’ return in November.
The SBA’s loan application portal remains open, its disaster centers and in-person staff remain deployed across the country, and it 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. Regardless of SBA funding availability, disaster survivors should start the application process immediately so that SBA disaster teams can position eligible applicants to receive offers and funds.
“We know that swift financial relief can help communities recover quickly to stabilize local economies,” says Administrator Isabel Casillas Guzman. “While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. SBA will continue to support homeowners, renters, businesses and nonprofits in processing their applications to ensure they receive assistance quickly once funds are replenished.”
The SBA will accept and process new applications from disaster declarations that it is supporting (a total of 173 at the time of this statement) and queue eligible applicants. Funding requests will be processed in the order in which they were received.
The SBA will issue declines for new applicants who don’t meet eligibility or underwriting criteria for a loan and provide information on additional resources for support.
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