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Small Business Administration Disaster Fund Running Low on Funding, Emergency Intervention Needed
The Small Business Administration’s disaster loan fund is running dangerously low on funds, with only a few weeks left before it may be depleted without emergency intervention from Congress. The aftermath of Hurricane Helene has led to a surge in applications for assistance, putting a strain on the remaining pot of funding. President Biden has urged Congress to act swiftly to provide additional funding, warning that the situation is becoming more urgent.
Congress failed to include additional funding for the disaster fund in a recent spending bill, leading to concerns that the money may run out before Congress returns in November. Lawmakers from hurricane-impacted states are calling for immediate action to ensure that businesses and individuals affected by natural disasters receive the support they need.
In response to the crisis, Rep. Jared Moskowitz is introducing an emergency bill to boost funding for the Small Business Administration programs. Senator Rick Scott has also emphasized the need for Congress to reconvene and approve new federal aid to address the destruction caused by Hurricane Helene.
The Small Business Administration’s disaster loans provide crucial assistance for losses and damages not covered by insurance. In 2023, the agency lent nearly $3 billion to disaster survivors nationwide, including over $670 million for small businesses. With the funding running low, there is a growing sense of urgency for Congress to act and provide the necessary support for those impacted by natural disasters.
