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Federal Disaster Fund Depleted as 50,000 Applications Pour in Following Twin Hurricanes


When Hurricane Helene caused flooding in Asheville, North Carolina, Lucious Wilson watched as his brewery, Wedge Brewery, was destroyed. Despite the need for financial assistance, federal aid from the Small Business Administration (SBA) has run out due to an overwhelming number of applicants. The Biden administration is urging Congress to approve new funds before they reconvene on November 12, but experts believe it’s unlikely to happen due to the upcoming election.

The SBA disaster loan fund remains a critical source of funding for businesses affected by natural disasters, and the agency continues to process applications so money can be distributed quickly once funds are replenished. The SBA Administrator emphasized the importance of swift financial relief for communities to stabilize local economies.

House Speaker Mike Johnson reassured small business owners that there will be no delay in approving applications and distributing funds. The program has already approved loans totaling $48 million for about 750 applicants before the funds ran out. The aid is provided in the form of low-interest loans to repair and rebuild properties damaged by disasters.

Despite the importance of financial assistance, some business owners, like Wilson, are hesitant to apply for SBA loans due to their financial uncertainties. Wilson, who is focused on rebuilding his brewery, expressed emotional challenges in considering the possibility of not being able to rebuild his original business. The SBA has also strengthened its vetting process to prevent fraud and misuse of funds, ensuring that the aid reaches those who truly need it.

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www.nbcnews.com

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