When the river began to rise in Asheville, North Carolina, last month, Lucious Wilson stood on a nearby hill and watched his brewery slowly disappear under the flooding from Hurricane Helen.
“We need help,” he told NBC News this week, standing near the ruins of his business, Wedge Brewery. “We don’t need politics.”
But for those affected by recent hurricanes, a critical source of federal aid may not be immediately available. Approximately 54,000 people applied for low-interest loans from the disaster fund run by the Small and Medium Enterprise Agency, but the funds have run out.
Biden administration officials are pressuring Congress to return in the coming weeks to approve new funding, but experts say that is unlikely given the focus on the November election. There is.
This means applicants will not receive their funds until Parliament reconvenes on November 12th.
Lucious Wilson outside his business, Wedge Brewery, in Asheville, NCNBC News.
The situation highlights how federal programs are being put at a disadvantage by Congress passing stopgap funding bills rather than year-long measures. The SBA Disaster Loan Fund remains the primary source of funding for businesses devastated by natural disasters, according to the Congressional Research Service.
Despite funding issues, government officials are encouraging people affected by the storm to apply for loans. Officials said the SBA will continue to process and review loan applications and make funds available as soon as possible — possibly within four days of Congress replenishing the funds.
“We know that prompt financial relief can lead to rapid recovery for our communities and stabilize our local economies,” SBA Administrator Isabel Casillas Guzman said Tuesday. “While we wait for Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans.”
House Speaker Mike Johnson said Sunday in an interview with NBC News’ “Meet the Press” host Kristen Welker that there would be no delay.
“Congress is not going to leave small business owners without hope,” said Johnson, R-Louisiana, noting that it typically takes two weeks for applications to be approved and funds to be disbursed. .
“There are only 23 days until the election,” he said. “I think that coincides almost exactly with when most of these applications are initiated and many of them are processed now.”
The more than 50,000 applicants are individuals, households, nonprofit organizations, and businesses. About 750 people were approved for loans totaling $48 million before the funds ran out, the SBA said.
The aid will be provided in the form of low-interest loans “to repair, rebuild, and recover uninsured, underinsured, or other uncompensated economic losses following a declared disaster,” the agency said. . The first repayment will be deferred for one year, according to the website.
Some of the programs were subject to $78 billion in fraud during the pandemic, according to the agency’s inspector general. Since then, the SBA has taken steps to strengthen its review process, officials said.
Wilson, the Asheville brewery owner, said he is focused on getting the second location up and running again. He is reluctant to apply for an SBA loan due to his unstable financial situation.
Earlier this week, Mr Wilson became emotional as he admitted he may never be able to rebuild his original business.
“It’s hard to think about it, to be honest,” he said. “Because it brings tears to my eyes.”
