Small Business Administration Depletes Disaster Loan Funds

The Small Business Administration has run out of funds to provide low-interest loans to homeowners and businesses to repair property damaged by disasters, the Biden administration said on Tuesday.The drawdown of funds comes as residents across the Southeast are still recovering from the destructive impacts of Hurricanes Milton and Helene.Federal officials urged eligible people to continue to apply for loans, which they would continue to process while they wait for lawmakers to pass “much-needed funding.” But Congress is not set to reconvene until Nov.

12, and congressional leaders have not committed to calling members back sooner to approve more funding for the S.B.A.or the Federal Emergency Management Agency.“Speaker Johnson has promised that this and other disaster programs will be replenished when Congress returns, so Americans should continue to apply for these loans,” President Biden said in a statement, referring to Speaker Mike Johnson.

“S.B.A.will continue to process applications and will disburse loans as soon as Congress provides the needed funding.”Isabel Guzman, the agency’s administrator, warned last week that the S.B.A.

would soon run out of funds, and she called on lawmakers to return to Washington to approve more money.Mr.

Biden also urged Congress to “restore this funding” earlier this month.Mr.Johnson said that federal officials had enough disaster funding to address the immediate needs of Americans in hurricane-affected areas.

He has pointed to the additional $20 billion that Congress recently approved for FEMA’s disaster relief fund.FEMA officials have said they have enough money for the immediate recovery needs of people affected by Hurricane Milton.But they have said that they will have to evaluate how quickly they are burning through funding.

Alejandro N.Mayorkas, the homeland security secretary, has also warned that FEMA might not have enough funding to make it through the rest of the hurricane season.We are having ...