There’s an increasing demand for the U.S Congress to reconvene in Washington to address the escalating expenses linked to Hurricanes Helene and Milton. Legislators from states heavily affected by these hurricanes are advocating for the U.S House and Senate to address the dwindling funds in the U.S Small Business Administration’s disaster loan fund.
“Congress continuing its recess while families and businesses in North Carolina and other regions are in dire need of help is inexcusable,” stated Representative Wally Nickel, a first-term Democrat from North Carolina. According to him, communities are grappling to recover in the wake of Hurricane Helene, and small businesses are in desperate need of support for their rebuilding efforts. The recovery process is at a standstill due to a lack of additional funding.
Despite the growing clamor for action on the loan funds, Congressional leaders have resisted, choosing to focus on reelection races. The U.S. Small Business Administration announced that its disaster loan program, a critical lifeline for businesses and homeowners affected by natural disasters, has run out of funds. The agency had previously alerted lawmakers to the risk of the hurricanes depleting vital funds and pleaded for swift approval of more money.
The agency stated that until Congress sanctions additional funds, it will halt new loan offers to disaster victims. It will, however, continue to encourage victims to apply for loans, given assurances from Congressional leaders that more funding will be provided when Congress reconvenes in November.
Florida Republican Senator Rick Scott has called on Senate leaders to reconvene as soon as possible to assess the damage and needs of agencies, including the SBA. Meanwhile, Florida Democrat Representative Jared Moskowitz asserted that Congress was aware of the dwindling funds but failed to act proactively. He argued that waiting until mid-November to address this issue was not the right move.
Comments from Speaker Mike Johnson’s office regarding an early return to address SBA funding were not forthcoming. Johnson did, however, discuss whether Congress should reconvene earlier to address funding for the Federal Emergency Management Agency on “Face the Nation”. He asserted that Congress could not simply allocate money based on estimates of damages and that the state would need to provide actual needs.
Whether you’re an investor or someone simply interested in the matter, it’s clear that the response to the natural disasters and the subsequent financial impacts will play a significant role in the ongoing political and economic landscape.
