WASHINGTON, D.C. – The Small Business Administration announced they have exhausted money to provide loans to businesses and homeowners who have been impacted by disasters. Those types of loans are much needed in many communities across the U.S. following the recent storms.
“As we’ve advised congress, we are running out of funds,” said SBA Administrator Isabel Casillas Guzman. “It’s just a matter of days.”
That warning from the SBA Administrator was last week. Just days later, the agency announced they have exhausted funds for new disaster loans. The SBA program offers loans to homeowners, renters, nonprofits and businesses big and small, who have been affected by disasters. The loans are geared towards providing immediate relief to people and businesses and avoid bankruptcy.
Recently, Florida and some east coast states have been hit hard by two hurricanes. A couple of months ago, storms and flooding damaged communities across New York and Pennsyvlania. Many rely on loans like this one to help pick up the pieces.
Congress will have to replenish the funds but they’re not scheduled to return until mid- November. Speaker of the House Mike Johnson reassures that when members return there’s strong support to provide necessary funds.
“We want to also make sure that people out there who need these resources they can continue to apply for loans and SBA is going to continue to process those applications,” said White House Press Secretary Karine Jean Pierre. “But Speaker Johnson made a commitment and we are going to see that commitment follow through.”
Until congress approves additional funds, the SBA said they’re pausing new loan offers. The agency said they will also continue to support existing borrowers and applicants who have already received offers.
The SBA adds despite this funding lapse, borrowers who already have a loan offer will continue to receive disbursements, and borrowers who already have existing loans may continue to receive disbursements, and borrowers who already have existing loans may continue with servicing actions and loan modifications.