SBA announces its out of money

WASHINGTON (NEXSTAR) – Small businesses, homeowners and renters impacted by the recent hurricanes may have to wait longer for disaster relief.

The Small Business Administration reports it has run out of money for its disaster loan program.

“A critical lifeline to small businesses, homeowners, renters affected by disasters,” said White House Press Secretary Karine Jean-Pierre.

The low-interest SBA loans offer up to $2 million for businesses. Homeowners can also receive up to half a million dollars to repair or replace property. However, the program is broke after receiving nearly 50,000 applications from hurricane victims and approving $48 million in loans.

“We need Congress to do its job,” Jean-Pierre said.

Lawmakers have to approve any additional funding for the loans and do not plan on returning to the U.S. Capitol until after the election, but House Speaker Mike Johnson (R-La.) vowed to act then.

“He said that they will be replenished by Congress,” Jean-Pierre said. “So that’s the commitment that he made. That’s what we want to see.”

In the meantime, SBA said Americans should still submit applications for the loans so the agency can process them and then disburse the funds as soon as Congress acts.

“Small business is the backbone of our economy,” said Angel Class, a spokesperson for SBA’s Office of Disaster Recovery and Resilience. “Every small business that suffers, there’s an impact to that community in particular.”

The funding shortfall does not impact disaster relief from FEMA. Administrator Deanne Criswell said crews are still on the ground to help connect people to the money.

“We are not going anywhere,” Criswell said. “Working directly with survivors for as long as it takes.”

However, Criswell said FEMA will also eventually need more funding from Congress.

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