The Small Business Administration has announced that it has depleted its funding for disaster assistance loans, causing delays in aid for small businesses, homeowners, and renters affected by Hurricanes Helene and Milton. These loans, known as Economic Injury Disaster Loans, are crucial for those impacted by natural disasters. The SBA had previously warned of a potential funding shortage due to the expected increase in claims following Hurricane Helene.
While the SBA has paused new loan offers until additional funding is secured, other disaster relief programs such as those provided by the Federal Emergency Management Agency (FEMA) remain unaffected by the SBA shortfall. Hurricane Helene, a Category 4 storm, wreaked havoc across several states after hitting Florida's Gulf Coast, followed by Hurricane Milton two weeks later.
