What's happened
The Small Business Administration (SBA) has paused new disaster loan offers due to a funding shortfall, affecting survivors of Hurricanes Milton and Helene. President Biden urged Congress to act quickly to replenish funds, while Speaker Johnson indicated that immediate needs are being met through FEMA's existing resources. Applications will still be processed during this pause.
Why it matters
What the papers say
According to Axios, President Biden emphasized the importance of the SBA's disaster loan program, stating it is a "critical lifeline" for those affected by disasters. He warned that the program would run out of funds before Congress reconvenes, urging lawmakers to act swiftly. In contrast, Speaker Mike Johnson noted that FEMA has enough resources to address immediate needs, suggesting that the situation can wait until Congress returns. The New York Times reported that over 37,000 applications have been submitted for relief from Hurricane Helene, with the SBA having made more than 700 loan offers totaling about $48 million. This discrepancy in urgency between the SBA's funding needs and FEMA's current capabilities illustrates the complexities of disaster response and recovery efforts.
How we got here
The SBA's disaster loan program is crucial for homeowners and businesses affected by natural disasters. Following Hurricanes Milton and Helene, which caused significant damage in the Southeast, the SBA warned it would run out of funds before Congress reconvenes on November 12. This has led to a temporary halt in new loan offers.
Common question
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What Criticisms is the Federal Government Facing Over Hurricane Relief?
In the aftermath of Hurricanes Helene and Milton, the federal government's response to disaster relief has come under intense scrutiny. With misinformation circulating about FEMA's aid distribution and funding shortages affecting the Small Business Administration (SBA), many residents are left wondering about the effectiveness of the recovery efforts. Here are some common questions and answers regarding the current situation.
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