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Federal disaster fund depleted after receiving 50,000 applications in wake of twin hurricanes


Lucious Wilson, the owner of Wedge Brewery in Asheville, North Carolina, watched helplessly as his business disappeared in floodwaters caused by Hurricane Helene last month. However, federal aid from the Small Business Administration (SBA) has run out, leaving 54,000 applicants waiting for loans. The Biden administration is urging Congress to approve new funds, but with the focus on the November election, this is unlikely to happen before November 12 when Congress reconvenes. This highlights how federal programs have been hindered by stopgap funding bills rather than long-term measures.

Despite the funding issues, the SBA continues to process applications, with eligible businesses expected to receive loans within four days of funding being replenished by Congress. House Speaker Mike Johnson has assured that small business owners will not be left wanting, as the application process typically takes two weeks. The loans are available to individuals, households, nonprofit organizations, and businesses to repair and recover from uninsured or underinsured losses due to disasters.

The SBA’s disaster loan program has been subject to fraud during the pandemic, leading to strengthened vetting processes. Wilson, who faces the devastation of losing his original business and financial instability, is focused on rebuilding his second location. He is hesitant to apply for an SBA loan due to his precarious situation. Despite the challenges, Wilson remains emotional about the loss of his business, acknowledging the possibility that he may never be able to rebuild it.

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www.nbcnews.com

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