SBA Disaster Loan Program Runs Out of Funds Amid Hurricane Response

[Social Media]

 

The Small Business Administration (SBA) has run out of money for its disaster loan program after an overwhelming demand in the wake of hurricanes Helene and Milton. Announced on Tuesday, the SBA confirmed that it had "exhausted funds" for its critical disaster loan services, which provide essential financial relief to small businesses, homeowners, and renters impacted by natural disasters.

 

President Joe Biden emphasized the importance of the program in a statement shared with several outlets, saying, "This program is a critical lifeline to small businesses, homeowners, and renters affected by disasters." However, the SBA has had to "pause new loan offers for its direct, low-interest, long-term loans to disaster survivors" until Congress approves additional funding.

 

Biden sought to reassure disaster survivors, stating that House Speaker Mike Johnson had pledged to replenish the disaster loan program when Congress reconvenes. "Americans should continue to apply for these loans," Biden said, adding that the SBA will keep processing applications and disbursing loans once the necessary funds are secured from Congress. 

Earlier this month, Biden had warned congressional leaders that the program would run out of money "well before"

 

Congress was set to return. The warning came as the demand for assistance surged after the recent hurricanes. Despite this, Speaker Johnson appeared unconcerned, telling CBS News that the issue "can wait" because Congress had already approved $20 billion in additional funds for FEMA as part of a stopgap government funding bill. This funding, Johnson argued, would allow FEMA to "address immediate needs" in disaster areas while Congress worked on a more permanent solution for the SBA loan program.

 

The $20 billion was allocated as part of a government spending measure that extended federal funding until December, at which time Congress is expected to review the SBA disaster loan program’s finances and potentially approve further funding.

 

For now, the SBA’s disaster centers and in-person teams remain deployed across the country. Despite the funding pause, the agency is encouraging disaster survivors not to wait to begin the loan application process. "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 SBA said. "Our disaster teams can take them through the application process and position eligible applicants to receive offers and funds as soon as Congress appropriates additional resources."

 

The SBA's disaster loan program provides a vital source of financial relief for individuals and businesses facing devastating losses after hurricanes, floods, and other natural disasters. As funds have been exhausted, affected communities are left in limbo until Congress takes action to replenish the program. President Biden has reiterated his administration’s commitment to continuing support for disaster survivors and urged lawmakers to act swiftly upon their return.

 

Representatives for Speaker Johnson did not immediately respond to requests for comment, leaving it unclear when the issue will be addressed in Congress. For now, thousands of disaster survivors wait for further clarity as the need for financial relief continues to grow.

 

Based on a report from AXIOS 2024-10-17

 

 

 

[Chomper Higgot]

Speaker Johnson once again actively fails to deliver for Americans in need of help.

 

 

[300sd]

2 hours ago, Chomper Higgot said:

Speaker Johnson once again actively fails to deliver for Americans in need of help.

 

 

Apparently the current gov't does the same. But to Ukraine no problem:

https://yournews.com/2024/10/16/2868403/biden-harris-administration-announces-425-million-aid-package-for-ukraine-as/

[Chomper Higgot]

10 minutes ago, 300sd said:

Apparently the current gov't does the same. But to Ukraine no problem:

https://yournews.com/2024/10/16/2868403/biden-harris-administration-announces-425-million-aid-package-for-ukraine-as/

Well whatabout that?!

[300sd]

26 minutes ago, Chomper Higgot said:

Well whatabout that?!

I think you get the point. If not don't worry about it! It's fairly obvious to many.

[placeholder]

1 hour ago, 300sd said:

I think you get the point. If not don't worry about it! It's fairly obvious to many.

The point you're not getting is that the money to Ukraine was already authorized through the legislative process. It was Mike Johnson, the Republican Speaker of the House who refused to reconvene Congress to pass legislation in the face of this emergency. Nice going, Republicans!

Edited October 17 by placeholder

[Chomper Higgot]

8 minutes ago, placeholder said:

The point you're not getting is that the money to Ukraine was already authorized through the legislative process. It was Mike Johnson, the Republican Speaker of the House who refused to reconvene Congress to pass legislation in the face of this emergency. Nice going, Republicans!

Hence the whataboutary.

[300sd]

2 hours ago, placeholder said:

The point you're not getting is that the money to Ukraine was already authorized through the legislative process. It was Mike Johnson, the Republican Speaker of the House who refused to reconvene Congress to pass legislation in the face of this emergency. Nice going, Republicans!

Of course it's the Republicans fault. Although didn't Congress supply FEMA with 20 billion? Seems like a lot. Did they spend it already?

[placeholder]

11 minutes ago, 300sd said:

Of course it's the Republicans fault. Although didn't Congress supply FEMA with 20 billion? Seems like a lot. Did they spend it already?

"It seems like a lot." Especially given that there haven't been any huge disasters lately...at least not in the alternate universe you inhabit. And maybe you should read the article again. It's about SBA funding. Not FEMA funding.

[300sd]

Perhaps you should join my universe occasionally since FEMA is mentioned in the article. In any event I'm happy to say I am wrong about it because really I don't follow the financial aspects of this situation too closely. It was just a bit of common sense that makes one ponder why so much goes to a war in another country before helping American citizens. I guess they don't get to vote for that but I think they may be paying for it.

[300sd]

46 minutes ago, placeholder said:

"It seems like a lot." Especially given that there haven't been any huge disasters lately...at least not in the alternate universe you inhabit. And maybe you should read the article again. It's about SBA funding. Not FEMA funding.

Oops. Read my post above. Guess it's time to move along:)

[placeholder]

4 minutes ago, 300sd said:

Perhaps you should join my universe occasionally since FEMA is mentioned in the article. In any event I'm happy to say I am wrong about it because really I don't follow the financial aspects of this situation too closely. It was just a bit of common sense that makes one ponder why so much goes to a war in another country before helping American citizens. I guess they don't get to vote for that but I think they may be paying for it.

 

2 minutes ago, 300sd said:

Oops. Read my post above. Guess it's time to move along:)

You have just admitted twice apparently that you are wrong. Such admissions are clear  violatations of  the unwritten law of this forum. Shame on you!

[300sd]

Common sense is not a gift it's a punishment. I'll leave you to figure out the last part of that quote. bye,bye.

[placeholder]

2 hours ago, 300sd said:

Common sense is not a gift it's a punishment. I'll leave you to figure out the last part of that quote. bye,bye.

What doesn't take much figuring out is that you're taking credit for wisdom without providing any evidence to support that claim. 

[JonnyF]

The Dems letting down the American people, yet again.

 

No shortage for Ukraine though. 

 

No wonder they want Trump back. 

[placeholder]

13 minutes ago, JonnyF said:

The Dems letting down the American people, yet again.

 

No shortage for Ukraine though. 

 

No wonder they want Trump back. 

Well, thanks again for demonstrating your ahem special understanding of the American political scene. Most of us had thought that Mike Johnson, the Speaker of the House, was a Republican. Fascinating to learn otherwise.

 

Mike Johnson won't commit to bringing House back before the election for more hurricane relief
In a letter to congressional leaders, Biden urged Congress to restore funding to the Small Business Administration’s disaster loan program as it faces potential funding shortfalls.

https://www.nbcnews.com/politics/congress/mike-johnson-wont-commit-bringing-house-back-election-hurricane-relief-rcna174174