Fox News senior congressional correspondent Chad Pergram reports on the FEMA disaster relief claims circling Capitol Hill.
The Small Business Administration (SBA) has run out of money for its disaster relief loans, delaying much-needed relief for people applying for aid after Hurricanes Helene and Milton, the government agency announced Tuesday.
In a press releaseAccording to the SBA, the funds were “depleted” after “increased demand from Hurricane Helene.”
The agency noted that loan applications remain open and disaster centers across the country remain staffed.
“Disaster survivors need to start with the application process immediately, regardless of the availability of SBA funding, so that our disaster teams can guide them through the application process and position eligible applicants to receive offers and funds,” the SBA said.
“We know that rapid financial relief can help communities recover quickly and stabilize local economies,” said SBA Administrator Isabel Casillas Guzman. “While we wait for Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans.
“SBA will continue to support homeowners, renters, businesses and nonprofits as they process their applications to ensure they receive prompt assistance once funds are replenished.”
SPEAKER JOHNSON RIPS ‘USE TO LEADERSHIP’ IN HELENE BIDEN ADMIN RESPONSE: ‘ALARMED AND DISAPPOINTED’
President Biden assessed the damage from Hurricane Milton in Florida this weekend. (Getty Images / Getty Images)
President Biden has said Congress must return to approve emergency aid after Hurricane Milton wreaked havoc on Florida’s Gulf Coast. (Aaron Schwartz/Sipa/Bloomberg via Getty Images/Getty Images)
Earlier this month, Biden sent a letter to Congress, sounding the alarm that the SBA “will run out of funding within a few weeks and well before Congress plans to reconvene.”
NORTH CAROLINA LEAVES THE INNOVATIVE HELENE AS THE DEATH TOLL RISE: ‘NEVER SEEN ANYTHING LIKE IT’
“As leaders, we have a responsibility to ensure that everyone in communities ravaged by natural disasters gets the federal resources they need and deserve to respond to and recover from deadly storms and other natural disasters,” Biden said.
Speaker of the House of Representatives Mike Johnson, R-La., talks to reporters at the U.S. Capitol in Washington, D.C. (Tom Williams/CQ-Roll Call, Inc via Getty Images/Getty Images)
House Speaker Mike Johnson, R-La., pushed back on Biden’s claim that responsibility lay with Congress, saying the Biden/Harris administration was “confused.”
“They are doing their best to hide their glaring mistakes and errors. And there is an attempt to blame others or blame circumstances, when this is purely a lack of leadership and response,” Johnson said in an earlier interview with Fox News Digital.
TRUMP TARGETS BIDEN AND HARRIS OVER FEDERAL RESPONSE TO HURRICANE: ‘INCOMPETENTLY MANAGED’
He noted that Homeland Security Secretary Alejandro Mayorkas said in July that FEMA was “extremely prepared” for weather crises this year.
An aerial view of destroyed and damaged buildings in the aftermath of Hurricane Helene in Bat Cave, NC (Mario Tama/Getty Images/Getty Images)
Since Hurricanes Helene and Milton, the SBA has submitted approximately 49,000 applications for assistance. Hurricane Helene had 37,000 registrations, while Hurricane Milton saw 12,000.
TRUMP TARGETS BIDEN AND HARRIS OVER FEDERAL RESPONSE TO HURRICANE: ‘INCOMPETENTLY MANAGED’
To date, the SBA has offered more than 700 Helene loans totaling approximately $48 million.
Mallory Tollett, 12, comforts her dog, Maggie, after a suspected tornado ripped through her family’s property in Port Salerno, Florida, as Hurricane Milton made landfall in the area last week. (Crystal Vander Weit/USA TODAY NETWORK via Reuters / Reuters)
The agency said they can provide disaster loans of up to $500,000 to homeowners to repair or replace property damaged or destroyed by a disaster.
Homeowners and renters may qualify for up to $100,000 to repair or replace disaster-damaged or destroyed personal property, and businesses may qualify for loans of up to $2 million for both physical damage and economic injury resulting from business interruption.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The SBA said interest rates are as low as 2.813% for homeowners and renters, 3.25% for nonprofits and 4% for businesses – with terms up to 30 years.
Fox News Digital has reached out the White HouseJohnson and the SBA for comment.
Elizabeth Elkind of Fox News Digital contributed to this report.
