SBA disaster loan program is out of money, says Biden

President Biden said on Tuesday that a key federal program that provides disaster loans to businesses and homeowners is tapped out on funds in the aftermath of back-to-back hurricanes.

Biden said in a statement first reported by The Washington Post that the Small Business Adminstration’s disaster loan program, which he described as “a critical lifeline to small businesses, homeowners, and renters affected by disasters, has been exhausted.”

“Speaker Johnson has promised that this and other disaster programs will be replenished when Congress returns, so Americans should continue to apply for these loans. SBA will continue to process applications and will disburse loans as soon as Congress provides the needed funding,” he added.

The Hill has reached out to the Small Business Administration and the White House for comment. 

Speaker Mike Johnson (R-La.) said on Thursday that there’s “no question these devastating back-to-back storms have stressed the SBA funding program.” However, he also said the administration “has the necessary disaster funding right now to address the immediate needs of American people in these hurricane affected areas.”

“Congress is tracking this situation closely, and when members return in just a few short weeks, the administration should have an accurate assessment of the actual dollar amount needed and there will be strong bipartisan support to provide the necessary funding.”

Biden administration officials have been sounding alarm over the program’s finances in recent weeks after it became clearer its funds were in danger of running out before Congress is scheduled to return next month. 

Officials said the program needs about $1.6 billion amid heightened demand following Hurricane Helene.

Congress last month passed a temporary stopgap measure to keep federal funding from lapsing in October and to prevent a government shutdown. The bill did not include additional funding for the SBA, despite repeated requests from the administration.

However, the Biden administration also has not yet released a new emergency supplemental funding request in the aftermath of Helene and Milton. 

Pressed on calls for an early return, Senate Majority Leader Chuck Schumer’s (D-N.Y.) office also said last week that he is “awaiting estimates from agencies working diligently on the ground.”