Chad Pergram, a senior congressional correspondent for Fox News, provided an update on claims for disaster relief by FEMA as discussed on Capitol Hill. The Small Business Administration (SBA) announced on Tuesday that it has depleted its funds for disaster assistance loans, causing delays in providing aid to those affected by Hurricanes Helene and Milton. In a press release, the SBA stated the funds have been “exhausted” due to “increased demand from Hurricane Helene.” Despite the funding shortfall, the loan application portal and disaster centers remain operational.
The SBA urged disaster survivors to begin the application process immediately, regardless of the current funding availability, to ensure eligible applicants are prepared to receive funds once they become available. SBA Administrator Isabel Casillas Guzman highlighted the importance of speedy financial relief for community recovery and encouraged continued applications while awaiting Congressional funding approval. She assured that the SBA would continue processing applications to offer prompt assistance once funds are replenished.
President Joe Biden recently toured damage in Florida caused by Hurricane Milton and has urged Congress to pass emergency relief measures. Earlier in the month, he sent a letter to Congress warning about the impending funding shortfall for the SBA and its potential impact before Congress’s anticipated return.
Speaker of the House Mike Johnson, representative for Louisiana, criticized the Biden administration’s response to the hurricanes, accusing it of scrambling and failing to provide effective leadership. He referenced Homeland Security Secretary Alejandro Mayorkas’s earlier assurance that FEMA was well-prepared for this year’s weather crises.
Since the occurrence of Hurricanes Helene and Milton, approximately 49,000 applications have been submitted to the SBA, with 37,000 related to Helene and 12,000 to Milton. The SBA has extended more than 700 loan offers totaling about $48 million. It offers loans up to $500,000 for homeowners to address disaster-related real estate damage, up to $100,000 for damaged personal property, and up to $2 million for businesses to cover physical damage and economic injury. Interest rates for these loans are as low as 2.813% for homeowners and renters, 3.25% for nonprofits, and 4% for businesses, with terms extending up to 30 years.
Fox News Digital has reached out to the White House, Speaker Johnson, and the SBA for additional comments. Elizabeth Elkind from Fox News Digital contributed to this report.