SBA disaster loan funds may run out soon, jeopardizing aid for businesses affected by Hurricane Helene and future disasters. (AP File)
- SBA offers disaster loans for businesses in six states affected by Hurricane Helene, with funding at risk of depletion.
- Business owners can apply for physical disaster loans and economic injury loans up to $2 million with low interest rates.
- States like Florida are offering additional assistance, including a $15 million emergency bridge loan program for affected businesses.
Share
Getting your Trinity Audio player ready...
|
NEW YORK — 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.
Related Story: Opinion: California Small-Business Grant Program Is Right Thinking, but Flawed ...
SBA Continues Processing Loans Despite Funding Concerns
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.”
Related Story: Labor Costs Remain High for Small Businesses, but a Report Shows Wage Growth Is ...
Types of Disaster Loans Available
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.
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.
Related Story: From Housing to Energy to Food, US Inflation Picks Up, Though Some Costs Rise ...
Loans for Homeowners and Renters
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.
RELATED TOPICS:
49ers Have Little Time to Dwell on Their Latest 4th Quarter Collapse
23 mins ago
Pioneers in Artificial Intelligence Win the Nobel Prize in Physics
28 mins ago
What to Know About Hurricane Milton as It Moves Toward Florida’s Gulf Coast
37 mins ago
Stock Market Today: Wall Street Holds Firmer After Hong Kong Stocks Fall to Worst Day Since 2008
41 mins ago
Patrick Mahomes Throws for 331 Yards, Derek Carr Hurt as Chiefs Shut Down Saints for Victory
43 mins ago
Small Business Disaster Loan Program Said to Be in Danger of Running Out of Funds by End of Month
49 mins ago
Porterville Man Pleads Guilty to Making 3D Printed Claymore Mine, M-67 Grenade
51 mins ago
States Sue TikTok, Claiming Its Platform Is Addictive and Harms the Mental Health of Children
56 mins ago
Caitlin Clark to Tee It up in LPGA Pro-Am at the Annika