Senate Republicans raise questions after funds for disaster loans exhausted
A group of GOP senators are pressing the Small Business Administration (SBA) for answers after officials said its disaster loan program exhausted its funds earlier this week in the aftermath of a pair of major hurricanes.
The letter, addressed to SBA Administrator Isabel Casillas Guzman, featured signatures from four Republicans on the Senate Committee on Small Business and Entrepreneurship: Sens. Joni Ernst (Iowa), Tim Scott (S.C.), Todd Young (Ind.) and James Risch (Idaho).
In the letter, the senators raised concerns about the administration’s handling of its disaster loan account and what they described as the office’s “failure to provide its authorizing committees statutorily required information.”
“These concerns are only heightened by the SBA’s lack of transparency, including the failure to provide an official Office of Management and Budget (OMB) request, and the requisite notifications and reports to authorizing committees,” they wrote. “These considerable missteps by your agency and its urgent supplemental funding request raise significant questions as to the SBA’s ability to monitor its disaster portfolio.”
The letter comes days after President Biden said the program, which he described as a “critical lifeline to small businesses, homeowners, and renters affected by disasters,” had been exhausted.
Biden administration officials have been sounding alarm over the program’s finances in recent weeks after it became clearer its funds were in danger of running out before Congress is scheduled to return next month.
Officials said the program needs about $1.6 billion amid heightened demand following Hurricane Helene.
But senators write in their letter that, “despite several news stories, the SBA failed to follow the law and only provided the statutorily required written notification of a need for supplemental funding on October 10, 2024, days after news stories broke.”
The senators accused the SBA of failing to comply, or partially complying, with reporting requirements that exist under law to ensure Congress is provided with “sufficient notification and information before any shortfall occurs in its disaster account.”
“We must consider whether SBA’s internal decisions were the catalyst for this unfortunate situation,” they wrote in the letter.
A spokesperson for the agency said in a statement to The Hill that the agency “first raised the need for additional funds to congressional appropriators in September 2023.”
Since then, the representative said the agency “has provided several bipartisan briefings and made many proactive requests to ensure the disaster loan program remains funded at a sufficient level.”
“While SBA’s requests were unfortunately not fulfilled, the agency continues to stand ready to work with Congress so that the tens of thousands of small business owners, homeowners, and renters devastated by Hurricanes Helene and Milton can get the funding needed to rebuild their homes and lives,” the spokesperson added.
However, the senators additionally took aim at certain administrative changes with SBA’s disaster loan program terms that they said “lead to a substantial increase in its subsidy rate” that “SBA failed to properly model and did not properly notify authorizers of the ramifications of these changes,” among other concerns.
They also provided a list of information requests for the agency to respond to no later than Oct. 21, including reporting regarding the disaster loan program and spend rate, the disaster cadre, the “most recent copy of the SBA’s disaster playbook” and “documents and communications related to supplemental funding requests” for fiscal years 2024 and 2025.
Date: | |
Tag: | Republican Party |
Topics
-
Top stories - NBC News
Small Business Administration disaster loan program exhausts funds after Hurricane Helene
The Small Business Administration said it has exhausted funds for its disaster loan program following increased demand from Hurricane Helene, with Congress being in recess.2 days ago -
Top stories - CBS News
SBA runs out of funding for disaster relief loans after Helene, Milton
The Small Business Administration offers Economic Injury Disaster Loans to businesses and people affected by disasters.2 days ago -
Top stories - The New York Times
SBA Depletes Disaster Loan Funds After Helene and Milton, Biden Says
Federal officials urged people to keep applying for the loans, which they said they would continue to process while awaiting more funding from Congress, which is not set to reconvene until Nov. 12.2 days ago - Joe Biden -
Politics - The Hill
SBA disaster loan fund running low
Welcome to The Hill's Business & Economy newsletter {beacon} View Online Business & Economy Business & Economy The Big Story SBA disaster loan fund running low Congress is facing more pressure ...3 days ago -
Politics - Politico
Disaster loan program fully ‘exhausted’ with Congress still out of town
Without congressional action, the Small Business Administration can’t make new loan offers to people trying to rebuild after disasters like Hurricanes Helene and Milton.3 days ago -
Business - Inc.
SBA’s Disaster Relief Fund Runs Dry After Milton’s Destruction Spikes Need
After hurricanes Milton and Helene bombarded Florida and other parts of the East Coast, the SBA’s funding pool has been depleted sooner than expected.2 days ago -
Top stories - NBC News
A federal disaster fund that had 50,000 applications after twin hurricanes is now out of money
A federal disaster fund has received 54,000 applications from those impacted by the recent hurricanes, but the money won't be available for weeks.4 hours ago
More from The Hill
-
Politics - The Hill
Haberman says Trump's rhetoric becoming 'much more apocalyptic'
Former President Trump's language has shifted to become “much more apocalyptic” than at the start of the election, journalist Maggie Haberman said. “For whatever reason his language, and I think we ...35 minutes ago - Donald Trump -
Politics - The Hill
Trump tells child there will be no cows under Harris
Former President Trump joined "Fox & Friends" on Friday for an in-person interview where he told a 6-year-old child the U.S. “won’t have any cows” if Vice President Harris is elected. In a recorded ...1 hour ago - Donald Trump -
Politics - The Hill
UK Labour Party's efforts to help Harris draw scorn from Trump World
The Labor Party in the UK is sending over 100 current and former staff members to battleground states in the US to volunteer for Vice President Harris, sparking controversy among Republicans who ...1 hour ago - United Kingdom -
Politics - The Hill
The fight for AI labels
The Hill's weekly technology news digest. {beacon} Friday, October 18, 2024 LEADING THE DAY Lawmakers struggle for ways to distinguish real content from AI fakes Image © Getty Images ...1 hour ago -
Politics - The Hill
How Matt Drudge turned on Trump
“American Psycho,” screamed the banner headline on the Drudge Report this week underneath a photo of former President Trump swaying back and forth listening to music at a town hall in Pennsylvania, ...1 hour ago - Donald Trump