(The Center Square) – Small businesses’ access to federal aid in rebuilding from Hurricane Helene is supported through a North Carolina congressman’s proposal in the House of Representatives.
Helene Small Business Recovery Act, authored by Rep. Chuck Edwards, R-N.C., drew the immediate support when filed last week of Democratic Rep. Don Davis and Republican Reps. Virginia Foxx and David Rouzer, all of North Carolina. The 5th Congressional District of Foxx and 11th of Edwards were significantly hit by the storm six months earlier, and the 7th Congressional District of Rouzer and the 1st of Davis are in the southeastern and eastern regions, respectively, of the state and the most often hit places by hurricanes.
“The Helene Small Business Recovery Act clarifies that SBA loans and federal grants, like those that will be offered through the CDBG-DR program, are not duplicative,” Edwards said in a release. “Without this clarification, businesses that took an SBA loan to keep themselves afloat would be prohibited from accessing federal grant money when it becomes available.
“Loans and grants are inherently different, and this bill will allow small business owners access to both federal resources so that western North Carolina, and every small business that makes our mountains such a great place to live, has the resources needed to recover.”
CDBG-DR is the acronym for Community Development Block Grant Disaster Recovery; SBA is an acronym for Small Business Administration.
The Stafford Act doesn’t allow federal agencies to duplicate benefits, and a loan is considered duplicative of a grant. SBA loans must be repaid; CDBG-DR grants are one-time payments to victims that do not have to be repaid.
A sunset passed in 2021 on the Disaster Recovery Reform Act of 2018 that, temporarily, said a loan is not part of a grant, Edwards’ release said.
The American Relief Act aiding in Helene recovery awarded $1.65 billion in disaster block grants to western North Carolina.
