The U.S. Small Business Administration (SBA) has announced the depletion of funds for its disaster loan program, following a surge in demand due to Hurricane Helene. As a result, the SBA will pause new loan offers until Congress allocates additional funds. Despite this pause, individuals and small businesses are encouraged to continue applying for loans. Congressional leaders have assured that more funding will be provided when Congress reconvenes in November.
The SBA's application portal remains operational, with disaster centers and staff deployed nationwide. The agency is prepared to process applications and issue loan offers once funds are available. "We know that swift financial relief can help communities recover quickly to stabilize local economies," stated Administrator Isabel Casillas Guzman. She urged eligible businesses and households to apply for loans while awaiting further congressional action.
Currently, the SBA is processing applications from 173 disaster declarations and has received approximately 37,000 applications related to Hurricane Helene alone. So far, over 700 loan offers totaling $48 million have been made for Helene-related damages. For Hurricane Milton, over 12,000 applications have been submitted.
Existing borrowers will continue receiving disbursements and may proceed with servicing actions or modifications on their loans. The SBA might also make a limited number of new loan offers if funds become available through cancellations or similar actions.
Following federally declared disasters, the SBA provides low-interest loans to business owners, nonprofits, homeowners, and renters as part of its relief efforts. These loans help avoid high-interest credit options like predatory bridge loans or credit cards.
If Congress approves additional funding, the SBA can offer up to $500,000 in disaster loans for homeowners' real estate repairs or replacements and up to $100,000 for personal property damages. Businesses could qualify for up to $2 million in loans covering both physical damage and economic disruption.
Interest rates are set at 4% for businesses, 3.25% for nonprofits, and 2.813% for homeowners and renters without alternative credit options; terms extend up to 30 years with deferred interest accruals until one year after initial disbursement.
Applications can be submitted online at sba.gov/disaster or by contacting the SBA's Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Resources from FEMA are also available at disasterassistance.gov.