Economic Policy SBA disaster fund is out of money, Biden says Hurricanes Helene and Milton struck the southeast recently

Source: Washington Post

Economic Policy
SBA disaster fund is out of money, Biden says
Hurricanes Helene and Milton struck the southeast recently, straining the fund’s ability to issue low-interest loans.


Sand and debris cover a tennis court, residential lots and road in Casey Key, Fla., on Friday. (Ted Richardson for The Washington Post)

By Jacob Bogage
Updated October 15, 2024 at 5:25 p.m. EDT | Published October 15, 2024 at 4:45 p.m. EDT

The Small Business Administration’s disaster loan program, which provides low-interest lending to disaster survivors, has run out of money, President Joe Biden said Tuesday, slowing recovery operations for millions of hurricane victims.

The agency, which assists renters, homeowners and businesses, will halt issuing new loans until Congress approves new funding. Individuals and businesses with existing loans will continue to receive payments.

Biden encouraged disaster survivors to continue applying for assistance, and said SBA would process new lending applications while the fund is empty and issue loans later. Congress is on a month-long recess until Nov. 12, after next month’s elections, and officials have said they will not call lawmakers back to Washington early to provide additional money.

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By Jacob Bogage
Jacob Bogage covers economic policy in Congress for The Washington Post, where he's worked since 2015. He previously covered business and technology and wrote for the Sports section.follow on X @jacobbogage

Read more: https://www.washingtonpost.com/business/2024/10/15/sba-disaster-fund-is-out-money-biden-says/