Joni Ernst questions SBA's disaster relief fund transparency

The aftermath of hurricanes Helene and Milton in October 2024 has placed pressure on the Small Business Administration (SBA) as it faces a shortage of funds for its disaster loan program. The lack of available funding is particularly concerning for those affected by the devastating impact of these hurricanes, which have resulted in loss of life and significant damage to homes and businesses. Senator Joni Ernst has publicly criticized the SBA's management of its disaster loan accounts, emphasizing the agency's failure to provide timely financial disclosures to Congress. Ernst's accusations include the claim that the SBA did not meet its legal requirements to inform congressional committees of potential funding shortfalls ahead of time. She cited the agency's insufficient communication over its financial status, which has resulted in difficulties for those in need of assistance. Despite media coverage of the financial issues, the agency only requested additional funding on October 10, 2024, after the problem had been widely reported. Compounding the issue are suggestions that SBA’s internal decisions regarding program expansions in 2023 and 2024 may have contributed to the financial crisis. The shifting terms of the disaster loan program are believed to have increased the subsidy rate, which the SBA failed to adequately communicate to Congress, leading to further complications in financial planning. As Congress is not scheduled to return until November 12, 2024, after the elections, new funding is not expected until then. In the interim, the SBA’s inability to process new loans leaves those affected by the hurricanes in a precarious situation.