In the aftermath of Hurricane Debby, the Southeast faces the challenge of rebuilding homes, businesses, and lives. Initial reports indicate at least six fatalities due to the storm.
Federal agencies are crucial in providing support to families and businesses affected by extreme weather events. One such resource is the Small Business Administration’s (SBA) disaster loan program, which offers low-interest loans to small-business owners and households needing property repairs. Southern states like Texas, Florida, and Louisiana frequently benefit from this program due to their vulnerability to extreme weather.
However, Project 2025 proposes ending SBA direct lending, including the disaster loan program. The proposal suggests privatization as a solution and claims that loan availability reduces incentives for purchasing disaster-related insurance but does not address rising costs for families.
From 2021 to 2023, home insurance rates rose nearly 20 percent nationally. In states like Florida and Louisiana, rates increased even more significantly. In 2023, Florida homeowners paid an average of $10,996 annually for home insurance. Louisiana homeowners faced a projected rate increase of up to 23 percent from 2023 to late 2024. According to the U.S. Chamber of Commerce Small Business Index, 27 percent of small businesses report being one crisis away from closing.
If implemented, Project 2025's policies would increase financial burdens on families and businesses during crises like Hurricane Debby.
The number of federal disaster declarations has risen since 1980. From 1980-1989 there were 286 declarations; from 2014-2023 that number increased to over four times as many at 1,267 declarations—a rise of over 443 percent. Project 2025 also proposes raising FEMA's threshold for disaster declarations making it harder for states and localities to qualify for federal aid after disasters.
The SBA’s disaster loan program is increasingly relevant as climate change intensifies weather events. Since 1980 there have been an estimated $2.8 trillion in damages from confirmed extreme weather events causing over $1 billion each in losses when adjusted for inflation with more than sixteen thousand deaths recorded since then.
As of July 31st this year data shows that since 2017 more than three hundred forty-one thousand five hundred sixty-nine loans totaling twenty-eight billion dollars have been disbursed under SBA’s disaster loan program helping individuals recover especially those in Gulf Coast states where most loans were given out particularly benefiting areas facing intensifying climate risks such as Florida Texas Louisiana among others
Extreme weather events including storms hurricanes wildfires are becoming more common costly National Weather Service finds heat kills more Americans any other event Center American Progress found heat responsible additional one billion healthcare costs per summer While lethal danger workers hurricanes wildfires common cause applications SBAs Disaster Loan Program serving important role communities face historically dangerous storms example Houston Hurricane Harvey struck two thousand seventeen
Loans also provided less publicized disasters alone available Michiganders Kalamazoo neighboring counties EF2 tornado struck May seventh residents South Carolina eligible loans thunderstorm winds eighty mph Berkeley neighboring counties June tenth
Conclusion
Disasters like Hurricane Debby cannot be prevented but government preparedness swift efficient response expected especially amid increasing frequency intensity due climate change Instead far-right architects Project two thousand twenty-five propose abandoning American families small businesses time crisis fewer tools resources rebuild lives
