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Economic Policy

SBA will exhaust disaster relief funds by next week, chief says

After Hurricanes Milton and Helene, the Small Business Administration expects to run out its $50 million balance within several days.

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Mark Cionci surveys damage at the Pass-A-Grille Marina on Thursday in St. Pete Beach, Fla., a day after the community was hit by Hurricane Milton. (Ted Richardson for The Washington Post)
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The Small Business Administration, which provides low-interest loans to millions of disaster survivors, is set to run out of funding for hurricane victims within days, SBA Administrator Isabel Casillas Guzman told Congress late Thursday, as officials tally the extent of Hurricane Milton’s damage on the heels of Helene.

Without urgent action from Congress, the agency could be forced to stop offering new disaster assistance, Guzman wrote in a letter obtained by The Washington Post. The SBA issues loans worth as much as $100,000 for renters, $500,000 for homeowners and $2 million for business owners. The agency has roughly $50 million left in disaster loan authority, but officials expect to run out in the next several days due to escalating demand.

“At a time when many disaster survivors are looking for help and support, a lack of SBA disaster loans will impact recovery across the nation,” Guzman wrote. “Homeowners will be unable to access low-interest rate loans to replace their personal property damaged in a storm. Small businesses will be unable to access SBA funding to replace damaged equipment or inventory and cover economic injury from business disruption. For those who have experienced physical damage to their properties, no SBA funding will be available to homeowners, renters, small businesses or nonprofits seeking to rebuild.”

If the agency runs out of funding, Guzman said it would continue processing loan applications up to the point of payment “so that we are poised to disburse funds quickly once Congress provides additional funds.”

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