Current:Home > FinanceSmall business disaster loan program said to be in danger of running out of funds by end of month-LoTradeCoin
Small business disaster loan program said to be in danger of running out of funds by end of month
View Date:2024-12-24 07:08:50
NEW YORK (AP) — The Small Business Administration could run out of money to fund disaster loans in the wake of Hurricane Helene’s devastation.
As is typical after a disaster, the government is offering aid to small businesses that were in Helene’s path. The SBA is offering disaster loans for small businesses in some counties in Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia.
But President Joe Biden said in a letter to Congress Friday that aid could run out “ in a matter of weeks ” if more federal funding is not approved. And now another hurricane, Milton, is bearing down on Florida,
In a statement, the SBA said that it will continue sharing information about its disaster loan programs and assisting borrowers with initial processing and servicing loans. But if funding lapses, all new offers would be held back and delayed until program funding is replenished.
“We look forward to working with Congress to secure the federal resources necessary to ensure the SBA can continue funding affordable disaster loans for homeowners, renters, small businesses, and nonprofits,” said U.S. Small Business Administration Administrator Isabel Casillas Guzman. “Americans should not have to wait for critical assistance when they need it the most.”
As it stands, business owners can apply for two different types of disaster loans. Business physical disaster loans are for repairing or replacing disaster-damaged property, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible. Businesses have until the end of November to apply for these loans.
Economic injury disaster loans are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations meet financial obligations that cannot be met as a direct result of a disaster. These loans are intended to assist through the disaster recovery period. The deadline for these loans is June 30, 2025.
Businesses can access loans up to $2 million. Interest rates are as low as 4% for businesses and 3.25% for nonprofit organizations.
The SBA also offers disaster loans up to $500,000 to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property.
Business owners can apply for these loans at https://lending.sba.gov/search-disaster/. And more information can be found at https://www.sba.gov/funding-programs/disaster-assistance/hurricane-helene.
States are offering their own assistance programs too. For example, the Florida Department of Commerce is offering the Florida Small Business Emergency Bridge Loan Program, making $15 million available for businesses impacted by Hurricane Helene. Eligible small businesses may apply for loans of up to $50,000 through the program.
veryGood! (8)
Related
- New York eyes reviving congestion pricing toll before Trump takes office
- When is daylight saving time ending this year, and when do our clocks 'fall back?'
- What makes the New York Liberty defense so good? They have 'some super long people'
- Pilot killed and passenger injured as small plane crashes in Georgia neighborhood
- ONA Community Introduce
- Cleveland Guardians vs. New York Yankees channel today: How to watch Game 1 of ALCS
- Indigenous Peoples Day celebrated with an eye on the election
- Demi Moore Shares Update on Bruce Willis Amid Battle With Dementia
- Reese Witherspoon's Daughter Ava Phillippe Introduces Adorable New Family Member
- Historic Jersey Shore amusement park closes after generations of family thrills
Ranking
- Georgia lawmaker proposes new gun safety policies after school shooting
- U.S. Army soldier sentenced for trying to help Islamic State plot attacks against troops
- Trump’s campaign crowdfunded millions online in an untraditional approach to emergency relief
- Shocker! No. 10 LSU football stuns No. 8 Ole Miss and Lane Kiffin in dramatic finish
- Man killed by police in Minnesota was being sought in death of his pregnant wife
- The NBA’s parity era is here, with 6 champions in 6 years. Now Boston will try to buck that trend
- Bears vs. Jaguars final score: Caleb Williams, Bears crush Jags in London
- Basketball Hall of Fame officially welcomes 2024 class
Recommendation
-
Disney Store's Black Friday Sale Just Started: Save an Extra 20% When You Shop Early
-
Breanna Stewart, New York Liberty even WNBA Finals 1-1 after downing Minnesota Lynx
-
Sold! What did Sammy Hagar's custom Ferrari LaFerrari sell for at Arizona auction?
-
Giants vs. Bengals live updates: Picks, TV info for Week 6 'Sunday Night Football' game
-
Republican Vos reelected as Wisconsin Assembly speaker despite losing seats, fights with Trump
-
Kamala Harris, Donald Trump face off on 'Family Feud' in 'SNL' cold open
-
Man with loaded gun arrested at checkpoint near Donald Trump’s weekend rally in Southern California
-
Horoscopes Today, October 13, 2024