Congress Recess Halts Urgent SBA Disaster Loans

The U.S. Small Business Administration's disaster loan program funds are exhausted due to Hurricane Helene's impact. With Congress in recess, the SBA pauses new loan offers, urging applications with forthcoming funding anticipated upon Congress' return. Hurricane Helene caused over 200 deaths, urging swift congressional action.

The U.S. Small Business Administration (SBA) announced Tuesday that the funds for its disaster loan program have been depleted, driven by a surge in demand following Hurricane Helene's devastation. The U.S. Congress remains in recess, delaying immediate financial solutions.

"Until Congress appropriates additional funds, the SBA is pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors," stated the SBA. Despite this pause, the agency encouraged individuals and small businesses to continue applying, backed by reassurances from congressional leaders that additional funding will be forthcoming when Congress reconvenes in November.

The catastrophe of Hurricane Helene has resulted in over 200 fatalities across six U.S. states, with North Carolina suffering almost half of the casualties. President Joe Biden has advocated for Congress—currently in recess—to reconvene to urgently tackle disaster relief funding. Lawmakers from the House and Senate are not expected back in Washington until post-November 5 elections.

(With inputs from agencies.)