North Carolina Republican Senators Thom Tillis and Ted Budd intend to lead their congressional colleagues in introducing legislation to replenish funding for the Small Business Administration (SBA) Disaster Loan Program as communities rebuild after Helene and Milton. This follows the SBA’s announcement earlier this month that they had run out of funds, as was anticipated due to an increased demand following Hurricane Helene. 

“The citizens of Western North Carolina are some of the toughest and most resilient people in this country,” said Budd in a press release. “As they recover and rebuild their communities, they must be able to access disaster loans from SBA. This recovery will take many years, and I look forward to working with my colleagues to cut through the delays and provide WNC with the resources they need as quickly as possible.”

The Restoring an Economic Lifeline with Immediate Emergency Funding (Relief) Act would appropriate $550 million to fund the SBA Disaster Loan Program Account, which would provide $2.475 billion in lending capacity, projected to last until the end of 2024.

“Each amount appropriated or made available by this Act is in addition to amounts otherwise appropriated for the fiscal year involved,” reads the legislation. “Unless otherwise provided for by this Act, the additional amounts appropriated by this Act to appropriations accounts shall be available under the authorities and conditions applicable to such appropriations accounts for fiscal year 2025.”

The SBA is pausing new loan offers for direct, low-interest, long-term loans to disaster survivors until Congress appropriates additional funding. Nonetheless, the SBA is still encouraging small businesses to apply for loans due to assurances from congressional leadership that further funding will come through when Congress reconvenes in November.

“We know that swift financial relief can help communities recover quickly to stabilize local economies,” SBA administrator Isabel Casillas Guzman said in a press release. While we await 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 in processing their applications to ensure they receive assistance quickly once funds are replenished.”

In his op-ed in The Hill last week, Tillis emphasized that Congress needs to be proactive, rather than reactive when it comes to long-term disaster relief assistance. That is why he is leading the charge and pushing for Congress to come back from their seven-week recess and pass a federal disaster relief funding package, initiating a long-term recovery process for the communities that have been impacted by Helene and Milton.

“The SBA Disaster Loan Program running out of funds risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track,” said Tillis in a press release. “That is why I am leading legislation to replenish this fund when Congress returns to Washington, and I look forward to working across the aisle to pass a long-term disaster aid package that will provide additional resources to help make the victims of these hurricanes whole again.”