US disaster loan program exhausts funds after Hurricane Helene

By Kanishka Singh

WASHINGTON (Reuters) – The U.S. Small Business Administration said on Tuesday it has exhausted funds for its disaster loan program following increased demand from Hurricane Helene, with the U.S. Congress being in recess.

“Until Congress appropriates additional funds, the SBA is pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors,” the SBA said in a statement.

“However, SBA is encouraging individuals and small businesses to continue to apply for loans given assurances from congressional leaders that additional funding will be provided upon Congress’ return in November.”

The devastating Hurricane Helene killed more than 200 people in six U.S. states, nearly half of the victims in North Carolina alone.

President Joe Biden has said he believes the U.S. Congress, whose members are currently in recess, should come back into session to address disaster relief funding needs.

Members of the House of Representatives and Senate are not scheduled to return to Washington until after the Nov. 5 election.