The Small Business Administration’s disaster loan program has depleted its funds, leaving disaster survivors without access to new loans for rebuilding businesses and homes. The Biden administration announced the shortfall on Tuesday, but Congress, the only body able to authorize additional funding, is not set to reconvene until after Election Day. Speaker Mike Johnson stated that calling lawmakers back early would be “premature,” as states have not yet fully assessed recovery needs from recent hurricanes.
Johnson acknowledged the strain on the SBA but said the administration has sufficient disaster funds to cover immediate needs. Some Republicans indicated a willingness to return to session if agencies confirmed they were out of money. While emergency funding could be passed in brief “pro forma” sessions, any lawmaker could block it without a full vote.
Rep. Jared Moskowitz (D-Fla.) has proposed an $8 billion funding bill to address the SBA’s loan program, criticizing Congress for leaving during hurricane season without proactive funding. President Biden confirmed that Speaker Johnson had pledged to replenish disaster aid when Congress reconvenes.
Meanwhile, FEMA still has funds, but Administrator Deanne Criswell warned the agency might have to limit spending to “immediate needs” by December, potentially halting long-term recovery efforts like rebuilding Maui.
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