Washington, D.C. — Today, Senator Ted Budd (R-N.C.) chaired a Senate Committee on Small Business and Entrepreneurship field hearing entitled, “Small Business Association’s (SBA) Hurricane Helene Response: One Year Later.” In his opening statement, he discussed the Biden administration’s mismanagement of the SBA’s disaster loan program, which implemented irresponsible regulations and substantially increased the cost of issuing and administering disaster loans, leading to the federal government’s slow walking of critical aid. Senator Budd emphasized the importance of not repeating past mistakes to ensure regions struck by disaster have a clear path toward recovery. He also encouraged the federal government to be responsive to the needs of Western North Carolina as it continues to be rebuilt almost one year after Hurricane Helene.
Here are Sen. Budd’s remarks as prepared for delivery:
“Today’s hearing comes at a somber moment. Almost one year ago today, Hurricane Helene made landfall in Florida before continuing northward and devastating Western North Carolina.
“Many of us here today personally experienced the devastation that the storm brought; many areas were hit with high winds and received 20 – 30 inches of rain, leading to catastrophic flooding and mudslides that tragically claimed the lives of 108 North Carolinians.
“Altogether, a total of 11 states were impacted, and Helene caused almost $80 billion in damage, making it one of the worst hurricanes to hit the United States, ranking alongside Hurricane Sandy and Hurricane Katrina.
“Here in North Carolina, 39 counties were eligible for federal assistance following the storm. These counties comprise 40 percent of the state’s population and 45 percent of the state’s GDP.
“In the immediate aftermath, our state’s disaster survivors started down the challenging road of rebuilding. I want to say how proud I am of our state for coming together in this time of need and the sheer tenacity of everyone out here in Western North Carolina who lent a hand and helped folks in dire straits.
“Frankly, I wish the same could have been said for our federal government, but unfortunately, under President Biden, they were unprepared and asleep at the wheel. The Small Business Administration (SBA) provides disaster loans that have been crucial to many Americans recovering from natural disasters, and North Carolinians in the wake of Helene were no different. The SBA gives eligible individuals access to disaster recovery loans up to $500,000 and eligible businesses loans up to $2,000,000 for physical damage and economic injury. These loans help restore homes to their pre-disaster condition and help businesses replace equipment and maintain payroll.
“Unfortunately, due to the blunders of Biden’s SBA, too many North Carolinians were unable to find the help they needed to simply rebuild and regain their livelihoods.
“The prior Administration mismanaged the SBA’s disaster loan program by issuing irresponsible rules and dramatically increasing the costs of making and administering disaster loans. Moreover, as SBA drew closer to exhausting the funds it had on hand for these loans, the staff at the wheel of the Biden Administration failed in one of their most basic duties: notifying Congress that funding was running low.
“This led to an unacceptable 66-day shortfall, lasting from October 12th through December 20th of last year. Here in North Carolina, 97 percent of business loan applicants were impacted by this shortfall. For more than two months, the federal government left survivors in North Carolina on their own with nothing but their bootstraps and their community to assist in rebuilding.
“We must ensure a crisis like this will never happen again. This SBA program is instrumental in the rebuilding process, and once it was back to working, it has served over 3,500 North Carolinians following Hurricane Helene.
“That is why, earlier this year, I introduced the Disaster Loan Accountability and Reform Act to create more safeguards against a future shortfall. This bill would require annual appropriations to SBA’s disaster loan program, inform Congress when funds are low, and increase reporting to Congress. I want to thank my colleagues on the Small Business Committee for working in a bipartisan manner to get this bill through Committee.
“I am grateful for the many changes the Trump Administration has made to address the problems in this program since January, including improvements to reporting, local coordination, and constituent services.
“However, we are still recovering from the aftermath of Helene. It is critical to understand the impacts of the shortfall last year and what steps can be taken to further safeguard disaster survivors from being left without aid again.
“Returning Western North Carolina to normal, following Helene, hinges on our federal government and its agencies working in coordination with one another.
“I will continue to engage with each of our cabinet agencies to ensure that our federal government is responsive to the needs of Western North Carolina.”
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