Small business disaster loan program said to be in danger of running out
of funds by end of month
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 [October 09, 2024] By
MAE ANDERSON
NEW YORK (AP) — The Small Business Administration could run out of money
to fund disaster loans in the wake of Hurricane Helene's devastation.
As is typical after a disaster, the government is offering aid to small
businesses that were in Helene's path. The SBA is offering disaster
loans for small businesses in some counties in Florida, Georgia, North
Carolina, South Carolina, Tennessee and Virginia.
But President Joe Biden said in a letter to Congress Friday that aid
could run out “ in a matter of weeks ” if more federal funding is not
approved. And now another hurricane, Milton, is bearing down on Florida,
In a statement, the SBA said that it will continue sharing information
about its disaster loan programs and assisting borrowers with initial
processing and servicing loans. But if funding lapses, all new offers
would be held back and delayed until program funding is replenished.
“We look forward to working with Congress to secure the federal
resources necessary to ensure the SBA can continue funding affordable
disaster loans for homeowners, renters, small businesses, and
nonprofits,” said U.S. Small Business Administration Administrator
Isabel Casillas Guzman. "Americans should not have to wait for critical
assistance when they need it the most.”
As it stands, business owners can apply for two different types of
disaster loans. Business physical disaster loans are for repairing or
replacing disaster-damaged property, including real estate, inventories,
supplies, machinery and equipment. Businesses of any size are eligible.
Private, non-profit organizations such as charities, churches, private
universities, etc., are also eligible. Businesses have until the end of
November to apply for these loans.
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Jill Rice looks over the damage to her store caused by flooding from
Hurricane Helene, Sept. 27, 2024, in Gulfport, Fla. (AP Photo/Mike
Carlson, File)
 Economic injury disaster loans are
working capital loans to help small businesses, small agricultural
cooperatives, small businesses engaged in aquaculture, and most
private, non-profit organizations meet financial obligations that
cannot be met as a direct result of a disaster. These loans are
intended to assist through the disaster recovery period. The
deadline for these loans is June 30, 2025.
Businesses can access loans up to $2 million. Interest rates are as
low as 4% for businesses and 3.25% for nonprofit organizations.
The SBA also offers disaster loans up to $500,000 to homeowners to
repair or replace disaster-damaged or destroyed real estate.
Homeowners and renters are eligible for up to $100,000 to repair or
replace disaster-damaged or destroyed personal property.
Business owners can apply for these loans at https://lending.sba.gov/search-disaster/.
And more information can be found at https://www.sba.gov/funding-programs/disaster-assistance/hurricane-helene.
States are offering their own assistance programs too. For example,
the Florida Department of Commerce is offering the Florida Small
Business Emergency Bridge Loan Program, making $15 million available
for businesses impacted by Hurricane Helene. Eligible small
businesses may apply for loans of up to $50,000 through the program.
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