President Biden said Tuesday that a key federal program that provides disaster loans to businesses and homeowners is leveraging funds in the aftermath of the back-to-back hurricanes.
Biden said in a statement first reported. washington post He said the Small Business Administration's disaster loan program was a “critical lifeline for small businesses, homeowners and renters affected by disasters,” but said the program has been depleted.
“Speaker Johnson has promised that this and other disaster programs will be replenished once Congress reconvenes, so Americans should continue to apply for these loans. The SBA will continue to process applications. “We will disburse the loan as soon as Congress provides the necessary funds,” he added.
The Hill has reached out to the Small Business Administration and the White House for comment.
“There is no question that the back-to-back devastating storms have placed stress on SBA funding programs,” House Speaker Mike Johnson (R-Louisiana) said Thursday. But he also said the administration “has the necessary disaster funds available at this time to address the immediate needs of Americans in hurricane-affected areas.”
“Congress is following this situation closely, and once members return in just a few weeks, the administration should be able to accurately assess the amount actually needed, and we believe that bipartisan support to provide the necessary funding will be There will be strong support.”
Biden administration officials have been sounding the alarm about the program's finances in recent weeks, after it became clear that funding was at risk of running out before Congress reconvenes next month.
Officials said the program will cost about $1.6 billion after increased demand after Hurricane Helen.
Congress last month passed a temporary stopgap measure to prevent federal funding from expiring in October and prevent a government shutdown. Despite repeated requests from the administration, the bill did not include any additional funding for the SBA.
However, the Biden administration has not yet announced any new emergency funding requests in the aftermath of Herren and Milton.
Pressed on calls for an early return, the office of Senate Minority Leader Chuck Schumer of New York said last week that he was “awaiting estimates from government agencies working diligently on the ground.”
