While the disaster loan program recently hit its disaster lending cap, SBA is still taking applications and hopes to secure Congressional funding in early November.
On Oct. 15, the U.S. Small Business Administration (SBA) announced it hit its limit for the disaster loan program.
Along with SBA disaster centers, the loan application portal will remain open, and SBA is encouraging those affected to continue applying for these loans.
Due to the massive influx of loan applications following Hurricane Helene, SBA warned lawmakers it would hit its congressionally set loan limit, and Congress must appropriate additional funds toward the overall disaster lending authorization before SBA can continue actioning these loans.
Congressional leaders said they do not plan to call lawmakers back to Washington, D.C., to pass legislation, but Members indicated they will address the situation promptly in November when they return to Capitol Hill following the election.
“While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans,” SBA Administrator Isabel Casillas Guzman said.
According to a statement from the agency, SBA will continue to:
Accept and process new applications from all 173 disaster declaration areas the SBA is supporting. Applications in this queue can receive loan offers after additional funding from Congress becomes available, and funds will be processed in the order in which they were received. The SBA will issue declines for new applicants who do not meet eligibility or underwriting criteria for a loan and provide information on additional resources for support;
Support existing borrowers and applicants who have already received offers. SBA officials said the agency received around 37,000 applications for relief submitted from those impacted by Hurricane Helene alone, and SBA has already made over 700 Helene loan offers totaling about $48 million; for Hurricane Milton, SBA reportedly received over 12,000 applications. Importantly, despite this funding lapse, borrowers who already have a loan offer will continue to receive disbursements, and borrowers who already have existing loans may continue with servicing actions and loan modifications.
The SBA may continue to make a small number of new loan offers during this time, as funds may be made available through loan cancellations and similar actions.
NSBA urges lawmakers to prioritize small business and provide the needed funding to keep the disaster loan program running.
Please click here to learn more about the SBA Economic Injury Disaster Loan (EIDL) program
