U.S. SBA Pauses Disaster Loan Program

By Kanishka Singh

WASHINGTON (Reuters) – The U.S. Small Business Administration (SBA) announced on Tuesday that it has exhausted funds for its disaster loan program due to increased demand following Hurricane Helene, while Congress is in recess.

The SBA stated, "Until Congress appropriates additional funds, the SBA is pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors."

However, the SBA encourages individuals and small businesses to continue applying for loans, as congressional leaders have assured that additional funding will be provided when Congress returns in November.

Hurricane Helene was devastating, resulting in over 200 fatalities across six U.S. states, with nearly half occurring in North Carolina alone.

President Joe Biden has expressed his belief that Congress should reconvene to address disaster relief funding needs. Members of the House of Representatives and Senate are not set to return to Washington until after the November 5 election.