Calling from his office, just steps from Main Street, the mayor of Brevard, North Carolina, shared the pain of local businesses down the street.
For example, a handmade gift shop called “Local Color” is accustomed to thousands of dollars in sales during an average weekend, Mayor Maureen Kopeloff said. But then during a weekend hurricane helen“All they sold was a bar of soap.”
Kopeloff said a nearby seafood restaurant was so flooded with water from the storm's flooding that the owner initially told him, “I don't even know if I should try to rebuild.”
Brevard was one of dozens North Carolina community Devastated by Hurricane Helen. But the crisis has turned into a painful and uncertain wait for federal aid in October and November, which appears to be on hold.
“These businesses and these homeowners are desperate and I'm concerned,” Kopeloff told CBS News. “October is our biggest month for tourism, and sales were down 50 to 75%.”
Helen struck western North Carolina on September 27, leaving a path of destruction, death, and economic disaster that would take the state years to recover from.
There is a deadlock in Congress Indefinitely Delayed Attempt To replenish the U.S. Small Business Administration's Disaster Loan Fund, which provides emergency loans to homeowners and businesses to help rebuild damaged properties. Loans are also used to help upgrade homes and businesses to prevent damage from future hurricanes. This money can also be used to help offset lost sales while the business is closed.
Despite warnings from the Biden administration that federal funding for the loans would be completely exhausted by October, Congress left Washington before Election Day without passing legislation to replenish the fund. And upon returning from its recess last week, the Senate held a hearing to discuss plans for the future funding of the loan program. But no legislation has been drafted, nor has any date been set for a vote on any measures to restore funding.
“There's always a concern about Congress being slow to move,” Republican Senator Ted Budd of North Carolina told CBS News, “but I'm talking to my colleagues in the Senate to make sure this emergency funding gets done.” And let it be spent. In a proper way.”
Asked how quickly the money would be needed for communities affected by Hurricane Helene, Budd replied, “It was needed yesterday.”
“These aren't just numbers on paper, this is real money. This is our livelihood,” said Mike Hawkins, owner of Pisgah Fish Camp restaurant in Brevard, North Carolina. The building was so badly damaged that it could no longer be occupied.
Hawkins has closed the business until at least January or February. The restaurant suffered approximately $300,000 in damaged equipment, including its refrigeration units and fryers, a typical painful loss for a restaurant famous in part for its onion rings.
“Small businesses have a lot less margin for error,” Hawkins told CBS News.
Meanwhile, the backlog of applications for emergency loans has grown in recent weeks, according to a CBS News review. A federal official said 12,000 disaster loans are up for approval and funding, totaling about $1 billion in assistance. The Small Business Administration is also processing an additional 60,000 applications nationwide as the impasse over funding continues in Congress.
A congressional aide told CBS News that about 40% of the pending applications are in North Carolina.
Loan applications have been submitted by disaster victims, including homeowners and small businesses in communities across the country. Victims of hurricanes, tornadoes, wildfires and other emergencies have sought aid, but congressional aides told CBS News that the historic and widespread devastation from Hurricane Helene has dramatically increased the number of victims seeking loans.
Sen. Patty Murray, a Washington Democrat who chaired a hearing on the crisis last week, said, “This is one of the longest periods of time in my memory that we have gone without Congress providing disaster funding. This is unacceptable. This is long overdue. A matter of.” Delivering aid to those in need after the many disasters we have faced in the last two years.”
In testimony to a Senate panel, US Small Business Administrator Isabel Guzman said Agency “Provides assistance to those who are uninsured or underinsured.”
“With the delay, it impacts them further,” he said.
In North Carolina alone, the damage caused by Helene is widespread and historic. A report by North Carolina Republican Senator Thom Tillis said at least 151,000 homes and 500,000 small businesses were damaged.
“We are now 54 days past the initial impact of Helen,” Tillis said. “Many in the mainstream media and outside world have moved on and returned to business as usual, but for my constituents in western North Carolina: life is now measured in times before and after Hurricane Helene.”
Due to Washington's inaction, some communities waiting for emergency loans are starting local fundraisers to provide temporary assistance to affected businesses. In Brevard, the popular local band Steep Canyon Rangers held a fundraising concert on the town's Main Street in late October. Crowds in folding chairs covered the street.
CBS News
Tickets were free, and attendees were asked to donate to a charity formed to help community members affected by the storm.
A Transylvania County, North Carolina, fundraiser for businesses in need has raised $200,000 to help bridge the gap until Small Business Administration loans are finally funded and distributed by the federal government.
“We need to do something so these businesses don't literally close their doors,” Kopeloff said.
