The Small Business Administration (S.B.A.) has announced that it has exhausted its funds allocated for low-interest loans aimed at helping homeowners and businesses repair properties damaged by recent disasters. This alarming update was shared by the Biden administration on Tuesday, highlighting the urgent need for additional financial support.

As residents throughout the Southeastern United States continue to recover from the devastating impacts of Hurricanes Milton and Helene, federal officials are urging eligible individuals to apply for loans. Although the S.B.A. will continue to process these applications, they will remain in limbo until lawmakers approve the crucial funding needed to disburse loans.

Unfortunately, Congress is not scheduled to reconvene until November 12, and there has been no commitment from congressional leaders to call members back earlier to address the funding shortfall affecting both the S.B.A. and the Federal Emergency Management Agency (FEMA). In a statement, President Biden emphasized the importance of continued applications, stating:

“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.”

This statement referred to Speaker Mike Johnson, who has assured that the S.B.A. will process applications and will disburse loans promptly once Congress provides the necessary funding.

Just last week, Isabel Guzman, the administrator of the S.B.A., cautioned that the agency was on the brink of running out of funds and urged lawmakers to return to Washington to approve the needed financial support. President Biden had also previously called on Congress to “restore this funding” earlier this month, emphasizing the urgency of the situation.

In response to the crisis, Speaker Johnson noted that federal officials currently possess adequate disaster funding to meet the immediate needs of Americans affected by the hurricanes. He highlighted the additional $20 billion recently approved by Congress for FEMA’s disaster relief fund as a key resource.

FEMA officials, while asserting that they have sufficient funds to address the immediate recovery needs stemming from Hurricane Milton, have indicated that they will closely monitor how quickly these funds are being utilized. Alejandro N. Mayorkas, the Secretary of Homeland Security, also voiced concerns, warning that FEMA might face challenges maintaining sufficient funding through the remainder of the hurricane season.